All else being equal,if sales revenue doubles,variable costs will:
A)decrease in total.
B)increase in total.
C)decrease on a per unit basis.
D)increase on a per unit basis.

Question

Quizplus · Accepted Answer

Variable costs change in direct proportion to changes in the level of production or sales. Therefore, if sales revenue doubles, it implies that the level of sales has increased, leading to an increase in variable costs in total.

All Else Being Equal,if Sales Revenue Doubles,variable Costs Will