You are involved in the planning process for a firm that is expected to have a large increase in sales next year. Which type of firm would benefit the most from that sales increase: a firm with low fixed costs and high variable costs or a firm with high fixed costs and low variable costs?

You are involved in the planning process for a firm that is expected to have a large increase in sales next year. Which type of firm would benefit the most from that sales increase: a firm with low fixed costs and high variable costs or a firm with high fixed costs and low variable costs?

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Related Book For answer-question

Fundamentals of corporate finance

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

ISBN: 978-0470876442