If your fixed costs (including marketing, advertising, R&D, depreciation, etc.) are high relative to variable costs (which include labor or unit components), the strategic objective is to
A) maximize per unit margins.
B) eliminate advertising.
C) maximize sales volume.
D) raise the price as much as possible.

Question

Quizplus · Accepted Answer

When fixed costs are high relative to variable costs, maximizing sales volume helps spread the fixed costs over more units, reducing the average cost per unit and improving profitability.

If Your Fixed Costs (Including Marketing, Advertising, R&D, Depreciation, Etc