As long as a firm's cost of sales are primarily ________ then the firm's gross profit margin should be ________ from year to year.
A)variable; roughly equal
B)variable; vary widely
C)fixed; more likely to be the same
D)fixed; also fixed

Question

Quizplus · Accepted Answer

When a firm's cost of sales are primarily variable, its gross profit margin should be roughly equal from year to year, as variable costs change in proportion to production volume, maintaining a consistent margin.

As Long as a Firm's Cost of Sales Are Primarily