Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

تمرين 9

Average Cost Company A has 50% of its total variable manufacturing cost in labor and the other 50% in fuel. Company B has 80% of its total variable manufacturing cost in labor and the remainder in fuel. Suppose in a given year labor costs rise 5% and fuel costs rise 10%.
Required Which company has the higher percentage increase in total variable cost