An increase in variable costs .a.reduces contribution .b.increase margin of safety.c.increases the profit.d.increases p/v ratio .
Question
Solution 1
The impact of an increase in variable costs on different financial aspects can be explained as follows:
a. Reduces Contribution: Variable costs are those costs that change directly with the level of output. When variable costs increase, it means that more costs are being incurred for each unit of o Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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