Question: We put together a common sized income statement and find the following: Sales Year 1 Year 2 Year 3 Sales 10,000 5,000 20,000 Expense 20%

We put together a common sized income statement and find the following:

Sales Year 1 Year 2 Year 3

Sales 10,000 5,000 20,000

Expense 20% 40% 10%

Is this expense item more likely a fixed cost or a variable cost?

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