Solved

When a Greater Proportion of Costs Are Fixed Costs, Then

Question 46

Multiple Choice

When a greater proportion of costs are fixed costs, then ________.


A) a small increase in sales results in a small decrease in operating income
B) when demand is low the risk of loss is high
C) a decrease in sales reduces the total fixed cost per unit
D) a decrease in sales reduces the cost per unit

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q41: All else being constant, an increase in

Q42: The margin of safety is the difference

Q43: Craylon Manufacturing produces a single product that

Q44: Freddie's Company has mostly fixed costs and

Q45: Operating income plus total fixed costs equals

Q47: Arthur's Plumbing reported the following:<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3027/.jpg"

Q48: In most multiproduct situations when sales mix

Q49: What is sales mix? How do companies

Q50: Sensitivity analysis is _.<br>A) a way of

Q51: Sales of Blistre Autos are 380,000, variable