3Select the incorrect statement regarding the relationship between costbehavior and revenue.In a pure fixed cost structure, the unit selling price and unit contribution margin areequal.O A pure fixed cost structure offers higher potential rewards.In a pure variable cost structure, operating leverage is 1 (one).A pure variable cost structure offers more security if volume expectations are notachieved.O In a pure variable cost structure, when revenue increases by $1, so do profits.DE

Pure Variable Cost Structure - No fixed costs Pure Fixed Cost Structure - No variable Cost

Select the incorrect statement regarding the relationship between cost behavior and revenue. In a pure fixed cost structure, the unit selling price and unit contribution margin are equal. O A pure fixed cost structure offers higher potential rewards. O In a pure variable cost structure, operating leverage is 1 (one). A pure variable cost structure offers more security if volume expectations are not achieved. O In a pure variable cost structure, when revenue increases by $1, so do profits.

Select the incorrect statement regarding the relationship between cost behavior and revenue. In a pure fixed cost structure, the unit selling price and unit contribution margin are equal. O A pure fixed cost structure offers higher potential rewards. O In a pure variable cost structure, operating leverage is 1 (one). A pure variable cost structure offers more security if volume expectations are not achieved. O In a pure variable cost structure, when revenue increases by $1, so do profits.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter14A: The Practice Of Revenue Management

Section: Chapter Questions

Problem 1E

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