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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