Answer:
The correct answer is: more likely to experience a loss when sales are down than a company with mostly variable costs.
Explanation:
The fixed cost ratio is a simple ratio that divides fixed costs by net sales.
The profit formula is:
Profit = Sales- Total cost =(Price * Q)-(FC + VC*Q)
Where
FC=Fixed cost
VC= variable cos
t
Q=produce quantity
If sales go down, we have to pay this fixed cost even if we have no sales. So if this Fixed cost are high , is most likely we are going to experience loss
Help the child see that they themselves can answer what will happen if they come across a situation like so
The gradual decrease in the value of natural resource is called depletion. The deplection expense is calculated on the cost net off salvage value.

Therefore, Depletion expense per ton of ore would be $0.64 per ton of ore.