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CTP · Question #281
(Topic 3) A company which experiences increased business volumes but a minimal increase in profitability MOST LIKELY has:
The correct answer is B. low fixed costs and high variable costs. See the full explanation below for the reasoning.
Question
- (Topic 3)
A company which experiences increased business volumes but a minimal increase in profitability MOST LIKELY has:
Options
- Avery high level of operating leverage.
- Blow fixed costs and high variable costs.
- Chigh fixed costs and low variable cost.
- Dhigh effective cost of debt.
How the community answered
(50 responses)- A4% (2)
- B70% (35)
- C10% (5)
- D16% (8)
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