What will be the effect on fixed and variable labor cost percentages if an operation increases its sales volume?

Question

Quizplus · Accepted Answer

When an operation increases its sales volume, the fixed labor cost percentage will decline because the same fixed costs are spread over a larger number of units, reducing the cost per unit. Variable labor costs, however, typically stay the same percentage-wise, as they change in direct proportion to the production volume.

What Will Be the Effect on Fixed and Variable Labor