Under the contribution income statement, a company's contribution margin will be: a. Higher if fixed SG&A costs

Question:

Under the contribution income statement, a company's contribution margin will be:

a. Higher if fixed SG&A costs decrease.

b. Higher if variable SG&A costs increase.

c. Lower if fixed manufacturing overhead costs decrease.

d. Lower if variable manufacturing overhead costs increase.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...