If a Company Had a Pure Fixed Cost Structure,what Would

question 45

Essay

If a company had a pure fixed cost structure,what would be the relationship between a given dollar increase in sales and net income?

---

Definitions:

Signature

A person's handwritten or digitally authenticated mark used to signify agreement, consent, or identification.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time.

Primarily Liable

Primarily liable refers to the party that is first and foremost responsible for fulfilling an obligation or compensating for a liability.

Secondarily Liable

Secondarily liable refers to a party's obligation to pay a debt or perform a duty if the primary party responsible fails to do so.