Final answer:
As the price of products goes up, transportation costs become a lower percentage of the selling price.
Step-by-step explanation:
As the price of products goes up, transportation costs become a lower percentage of the selling price. This is because transportation costs are generally a fixed cost for companies, meaning they don't change significantly with changes in the selling price. So, as the selling price increases, transportation costs remain relatively constant, resulting in a smaller percentage.
For example, let's say a company sells a product for $100 and transportation costs are $10. In this case, transportation costs represent 10% of the selling price. If the company increases the selling price to $200, the transportation costs would still be $10, but now they only represent 5% of the selling price.
Therefore, as the selling price of products goes up, transportation costs become a smaller percentage of the selling price.