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

Question

Quizplus · Accepted Answer

Total variable cost varies directly with sales volume, so a 10 percent decrease in sales volume leads to a 10 percent decrease in total variable cost.

A 10 Percent Decrease in Sales Volume Will Result in a