(Solution) If The Percentage Change In Operating Income Resulting From A Given Percentage Change In Sales Is Higher Than The Percentage Change In Sales Itself,... | Snapessays.com


(Solution) If the percentage change in operating income resulting from a given percentage change in sales is higher than the percentage change in sales itself,...


If the percentage change in operating income resulting from a given percentage

 

change in sales is higher than the percentage change in sales itself, then

 

a. an increase in the selling price would not alter the contribution margin per unit.

 

b. variable costs per unit have increased.

 

c. variable costs have decreased in total.

 

d. the company has operating leverage.

 

e. the company has no fixed costs.

 


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This question was answered on: May 23, 2022

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