Select the Incorrect Statement Regarding the Relationship Between Cost Behavior

Multiple Choice

Select the incorrect statement regarding the relationship between cost behavior and profits.

A) A pure variable cost structure offers higher potential rewards.
B) A pure fixed cost structure offers more security if volume expectations are not achieved.
C) In a pure variable cost structure, when revenue increases by $1, so do profits.
D) In a pure fixed cost structure, the unit selling price and unit contribution margin are equal.