Two Firms,STM and VPL,have the Same Contribution Margin but VPL's

question 32

Multiple Choice

Two firms,STM and VPL,have the same contribution margin but VPL's fixed costs (including interest) are greater than STM's.The sales and tax rates of the two firms are the same.We would expect:

• A) VPL's income to have the same variability as STM
• B) VPL's income to be less variable than STM
• C) VPL's income to be more variable than STM
• D) Can't determine with the information provided

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Definitions:

Osteocytes

Osteocytes are mature bone cells formed from osteoblasts that have embedded themselves in the bone matrix; they maintain bone tissue structure and communicate with other bone cells.

Lacunae

Small spaces or cavities within bone or cartilage tissue that house cells.

Avascular

Lacking blood vessels, referring to tissues or structures that do not have their own blood supply.

Cartilage

A flexible, connective tissue found in various forms in the larynx and respiratory tract, among other locations. It provides structure and support.