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?

Answer rating: 100% (QA)

Step 11 The expense item is more likely a variable cost Variable costs are expenses that vary in pro... View the full answer