When a Greater Proportion of Costs Are Fixed Costs, Then

question 46

Multiple Choice

When a greater proportion of costs are fixed costs, then ________.

• A) a small increase in sales results in a small decrease in operating income
• B) when demand is low the risk of loss is high
• C) a decrease in sales reduces the total fixed cost per unit
• D) a decrease in sales reduces the cost per unit

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Definitions:

Accessory Glands

Glands that support the functioning of primary organs, especially in the reproductive system, such as seminal vesicles and prostate gland in males, and Bartholin's glands in females.

Erectile Tissue

Spongy tissue that can fill with blood to make an organ stiff and erect, found in parts of the body such as the penis and clitoris.

Prepuce

In males, the free fold of skin that more or less completely covers the glans penis; the foreskin. In females, the external fold of the labia minora that covers the clitoris.

Glans Penis

Conical expansion of the corpus spongiosum that forms the head of the penis.