With the Existence of Fixed Operating Costs, an Increase in Sales

question 168

Multiple Choice

With the existence of fixed operating costs, an increase in sales will result in ________ increase in EBIT.

• A) a proportional
• B) an equal
• C) a less than proportional
• D) a more than proportional

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Definitions:

Waste Products

Unwanted or unusable materials produced during or remaining after the completion of a process, including manufacturing, household, and biological processes.

Urine

Fluid secreted from the blood by the kidneys, stored in the bladder, and discharged from the body by voiding.

Creatinine

A waste product generated from muscle metabolism, whose blood levels are used to assess kidney function.

Triglycerides

A combination of glycerol and fatty acids in the blood.