A professional services business has fixed costs of €150,000 and variable costs of €15 per hour. The difference between average costs at a level of activity of 12,000 and 15,000 hours is:
A) A reduction of €2.50
B) An increase of €2.50
C) An increase of €15
D) A reduction of €25
Correct Answer:
Verified
Q1: Pricing of product/services depends on:
A)Cost
B) Competitor prices
C)
Q2: Fixed costs are costs that:
A) Never change
B)
Q4: The volume of activity and costs which
Q5: Use the following information
Q6: Use the following information
Q7: Use the following information
Q8: Use the following information
Q9: Use the following information
Q10: Sales mix affects profitability because:
A) Different products
Q11: Operating leverage is:
A) The ratio of debt
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