It is easier to justify the cost of research as the market size _______________ and as the ratio of variable costs to selling price _______________.
A) increases, increases
B) increases, decreases
C) decreases, increases
D) decreases, decreases

Question

Quizplus · Accepted Answer

The larger the market and the larger the contribution margin (i.e.,the lower the ratio of variable costs to selling price),the easier it is to justify research projects because more money is available.

It Is Easier to Justify the Cost of Research as the Market