Mr. Cuomo is considering two internet retailers for his investment . Mr. Cuomo is considering two internet retailers for his investment. He is a conservative person and is concerned about the impact of the change of future sales on the profitability of the two retailers. However, the future sales of the two retailers are influenced by market and economic factors and are difficult to predict. Two internet retailers have the following financial data this period (in Millions): ILoveShopping.com All-Online.com Sales $120$186Variable costs 70150Fixed costs 4024Net income $10$12Which of the following statements is TRUE?Group of answer choicesa. The net income of All-Online will decrease more in a market downturn. b. The net income of ILoveShopping will increase more in a market upturn c. The relative profitability of the two retailers will not change either in a market downturn or in a market upturn. d. ILoveShopping will have a smaller loss in a market downturn. Accounting Business Cost Accounting ACCT 90009
