Author Question: Companies that carry a high level of fixed costs relative to variable costs are considered to have (Read 40 times)

frosh101 · **on:** Feb 5, 2023

Question 1

If sales increase by 10%, then total contribution margin will
◦ increase by 10%.
◦ increase more than 10%.
◦ increase less than 10%.
◦ decrease by more than 10%.

Question 2

Companies that carry a high level of fixed costs relative to variable costs are considered to have
◦ a greater amount of period costs than product costs.
◦ a lesser risk than companies with a high level of variable costs relative to fixed costs.
◦ a greater amount of product costs than period costs.
◦ a greater risk than companies with a high level of variable costs relative to fixed costs.

saly · **Reply #1 on:** Feb 5, 2023

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