A Manager Calculates Labor Cost Percentages for Both Fixed and Variable

question 14

Multiple Choice

A manager calculates labor cost percentages for both fixed and variable labor costs. If there are no staff pay raises, and the manager's sales increase by five percent, the fixed labor cost percentage should

• A) increase and the variable labor cost percentage should decrease.
• B) increase and the variable labor cost percentage should be unchanged.
• C) decrease and the variable labor cost percentage should increase.
• D) decrease and the variable labor cost percentage should be unchanged.

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