Which of the following variables will be at their highest expected level under a worst case scenario?
I.fixed cost
II.sales price
III.variable cost
IV.sales quantity
A)I only
B)III only
C)II and III only
D)I and III only
E)I, III, and IV only

Question

Quizplus · Accepted Answer

In a worst-case scenario, fixed costs (I) remain constant regardless of production levels, but variable costs (III) are expected to be at their highest due to inefficiencies or increased input prices. Sales price and quantity are not necessarily highest in a worst-case scenario; sales price might decrease due to market conditions, and sales quantity might decrease due to lower demand.

Which of the Following Variables Will Be at Their Highest