Margin sensitive businesses have a cost structure that is:
A) high fixed cost to total cost
B) high fixed costs to variable costs
C) high variable costs to total costs
D) high variable costs to fixed costs

Question

Quizplus · Accepted Answer

Margin sensitive businesses have a cost structure with high variable costs to total costs, meaning their profitability is more sensitive to changes in sales volume.

Margin Sensitive Businesses Have a Cost Structure That Is