5 If total costs remain the same, the smaller the proportion of fixed costs in a firm's cost structurea. the smaller the impact a percentage change in sales volume will have on profit AND the lower the contribution margb. 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.

Under Marginal costing (variable costing) contribution percentage or contribution per unit of…

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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