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A Food Service Operation Experienced a 10% Decline in Volume

Question 16

Multiple Choice

A food service operation experienced a 10% decline in volume this month when compared to the previous month. If the reduction in volume was anticipated and scheduled for properly, the operation's


A) fixed and variable labor cost percentages will decrease.
B) fixed and variable labor cost percentages will increase.
C) fixed labor cost percentage will increase and its variable cost percentage will stay the same.
D) fixed labor cost percentage will decrease and its variable cost percentage will stay the same.

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