Variable cost per unit and total fixed costs


In the most cases, for profitable firm, assuming that unit sales remain the same, if the variable cost per unit and total fixed costs decrease by 10% and the firm reduces the selling prices to customers by 10%:

a. net income will be increased

b. net income will be decreased

c. net income will remain the same

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Accounting Basics: Variable cost per unit and total fixed costs
Reference No:- TGS051159

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