Maintaining Low Fixed Costs and High Variable Costs Rather Than

question 46

Multiple Choice

Maintaining low fixed costs and high variable costs rather than high fixed costs and low variable costs:

• A) Is a more conservative cost structure
• B) Is a more risky cost structure
• C) Is an equally risky cost structure
• D) Results in a higher contribution margin

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Definitions:

HOMO

The Highest Occupied Molecular Orbital, referring to the molecular orbital that contains the highest energy electrons in a molecule.

LUMO

Lowest Unoccupied Molecular Orbital, the lowest energy orbital that can accept an electron.

Hybridization

A concept in chemistry that describes the mixing of atomic orbitals to form new hybrid orbitals that can accommodate the pairing of electrons to form bonds.

Central Carbon

The carbon atom in an organic molecule that is bonded to four different groups, making it a chiral or stereo center.