A 10 percent increase in sales volume will result in a
A)10 percent decrease in total variable cost.
B)10 percent decrease in unit variable cost.
C)10 percent increase in total variable cost.
D)10 percent increase in

Question

Quizplus · Accepted Answer

A 10 percent increase in sales volume will result in a 10 percent increase in total variable cost. This is because variable costs are directly proportional to sales volume. As sales increase, variable costs increase as well.

A 10 Percent Increase in Sales Volume Will Result in a