21. If variable selling and administrative costs increased, how would the gross margin and contribution margin, respectively, be affected? Gross margin a. Not affect b. Not affect c. Decrease Contribution margin Increase Not affect Decrease Not affect Decrease d. Decrease Not affect

21. If variable selling and administrative costs increased, how would the gross margin and contribution margin, respectively, be affected? Gross margin a. Not affect b. Not affect c. Decrease Contribution margin Increase Not affect Decrease Not affect Decrease d. Decrease Not affect

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

21. If variable selling and administrative costs increased, how would the gross margin and
contribution margin, respectively, be affected?
Gross margin
a. Not affect
Contribution margin
Increase
b. Not affect
Not affect
c. Decrease
d. Decrease
Decrease
Not affect
Decrease
Not affect

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