If Total Costs Remain the Same, the Smaller the Proportion

question 28

Multiple Choice

If total costs remain the same, the smaller the proportion of fixed costs in a firm's cost structure

• A) the greater the impact on profit from a percentage change in sales volume.
• B) the smaller the impact a percentage change in sales volume will have on profit.
• C) the lower the contribution margin.
• D) the smaller the impact a percentage change in sales volume will have on profit AND the lower the contribution margin.

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Definitions:

Urinary Tract

The system in the human body responsible for producing, storing, and eliminating urine, consisting of kidneys, ureters, bladder, and urethra.

Outer Lips

The external folds of skin surrounding the openings of the vagina, also known as the labia majora in human anatomy.

Abstinence-Based

Pertaining to approaches or programs, especially in substance use or sexuality education, that promote refraining from certain behaviors.

Teen Pregnancy

The condition of being pregnant occurring in a young woman who has not yet reached the legal adulthood age of 18-20 years.