If Total Costs Remain the Same, the Smaller the Proportion

If total costs remain the same, the smaller the proportion of fixed costs in a firm's cost structure

A) the greater the impact on profit from a percentage change in sales volume.
B) the smaller the impact a percentage change in sales volume will have on profit.
C) the lower the contribution margin.
D) the smaller the impact a percentage change in sales volume will have on profit AND the lower the contribution margin.

Correct Answer:

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