Question: During the current year, XYZ Company increased its variable SG&A expenses while keeping fixed SG&A expenses the same. As a result, XYZ s: a )
During the current year, XYZ Company increased its variable SG&A expenses while keeping
fixed SG&A expenses the same. As a result, XYZs:
a Contribution margin and gross margin will be lower.
b Contribution margin will be higher, while its gross margin will remain the same.
c Operating income will be the same under both the financial accounting income
statement and contribution income statement
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