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Brasher Company manufactures and sells a single product that has a positive contribution margin. The...

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Accounting

Brasher Company manufactures and sells a single product that has a positive contribution margin. The firm uses a contribution format income statement for internal decision making purposes. If units sold increases but the selling price and the cost structure do not change, what would be the effect on total variable costs and fixed cost as a percent of sales?

Total variable costs Fixed cost as a percent of sales
A) Increase Decrease
B) Increase Increase
C) No change Decrease
D) No change Increase

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