Under the contribution income statement, a company's contribution margin will be lower if? Fixed selling, general and administrative expenses decrease Variable manufacturing overhead decrease. Fixed manufacturing overhead costs decrease. O Variable manufacturing overhead costs increase.

Under the contribution income statement, a company's contribution margin will be lower if? Fixed selling, general and administrative expenses decrease Variable manufacturing overhead decrease. Fixed manufacturing overhead costs decrease. O Variable manufacturing overhead costs increase.

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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estion 6
Under the contribution income statement, a company's contribution margin will be lower if?
O Fixed selling, general and administrative expenses decrease
Variable manufacturing overhead decrease.
Fixed manufacturing overhead costs decrease.
Variable manufacturing overhead costs increase.

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Which of the following is true of fixed and variable costs? Volume changes will not change the relationship between fixed and variable costs. Fixed costs are fixed in total, but vary per unit; variable costs vary in total, but are fixed per unit. As sales increase, the contribution margin percentage increases. O The relationship between sales, variable costs, and the contribution margin does not change when the sales price per unit changes. The contribution margin is what remains after fixed costs have been subtracted from total sales.
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In the fixed cost per unit does the it increase as activity decreases and will decrease as activity increases?
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