Question

As Plastic Products is operating at just 87 percent capacity, although it is earning a substantial...

As Plastic Products is operating at just 87 percent capacity, although it is earning a substantial profit, its increase in sales will least lead to the firm's __________ to increase.

Accounts recievable

Cost of Goods sold

Accounts payable

Fixed Assets

Inventory

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Answer #1

As the sales increase, the cost of goods sold associated with the sales also increases.

The answer is Cost of goods sold.

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