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If total costs remain the same, the smaller the proportion of fixed costs in a firm's cost structure a. the smaller the impact a percentage change in sales volume will have on profit AND the lower the contribution marg Ob. the greater the impact on profit from a percentage change in sales volume. c. the smaller the impact a percentage change in sales volume will have on profit. d. the lower the contribution margin.

If total costs remain the same, the smaller the proportion of fixed costs in a firm's cost structure a. the smaller the impact a percentage change in sales volume will have on profit AND the lower the contribution marg Ob. the greater the impact on profit from a percentage change in sales volume. c. the smaller the impact a percentage change in sales volume will have on profit. d. the lower the contribution margin.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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If total costs remain the same, the smaller the proportion of fixed costs in a firm's cost structure a. the smaller the impact a percentage change in sales volume will have on profit AND the lower the contribution marg b. the greater the impact on profit from a percentage change in sales volume. c. the smaller the impact a percentage change in sales volume will have on profit. d. the lower the contribution margin.
Transcribed Image Text:If total costs remain the same, the smaller the proportion of fixed costs in a firm's cost structure a. the smaller the impact a percentage change in sales volume will have on profit AND the lower the contribution marg b. the greater the impact on profit from a percentage change in sales volume. c. the smaller the impact a percentage change in sales volume will have on profit. d. the lower the contribution margin.
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