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An Operation Has an Expense That Is 100% Variable

Question 20

Multiple Choice

An operation has an expense that is 100% variable. If that operation's sales volume decreases, the amount spent on this variable expense will


A) increase and the variable expense percentage will increase.
B) decrease and the variable expense percentage will decrease.
C) increase and the variable expense percentage will be unchanged.
D) decrease and the variable expense percentage will be unchanged.

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