asked 41.7k views
1 vote
In all respects, company a and company b are identical except that company a's costs are mostly variable, whereas company b's costs are mostly fixed. when sales increase, which company will tend to realize the greatest increase in profits? explain.

asked
User Chengbo
by
8.5k points

1 Answer

3 votes
Company B will more than likely realize the greatest increase in profits because they are willing to spend more money. You have a greater chance for profit if you increase how much your willing to gamble with.
answered
User Platinummonkey
by
7.9k points
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