Question

How will an increase in variable costs affects the profitability pf the business in the economy

Answer 1

Answer:

Fixed costs are expenses that do not change based on production levels; variable costs are expenses that increase or decrease according to the number of items produced. Both fixed and variable costs have a large impact on gross profit—an increase in expenses to produce goods means lower gross profit.

Explanation:

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Answer 2

Answer:

Fixed costs are expenses that do not change based on production levels; variable costs are expenses that increase or decrease according to the number of items produced. Both fixed and variable costs have a large impact on gross profit—an increase in expenses to produce goods means lower gross profit.