If a Company's Income Is Positive and Fixed Costs Exist

question 97

Multiple Choice

If a company's income is positive and fixed costs exist, which of the following items will increase or decrease at a greater rate than the change in the amount of sales on a variable costing income statement?

• A)Variable costs
• B)Fixed costs
• C)Contribution margin
• D)Net income

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Definitions:

Central Intelligence Agency (CIA)

A civilian foreign intelligence service of the federal government of the United States, tasked with gathering, processing, and analyzing national security information.

Federal Bureau of Investigation (FBI)

A federal agency of the United States responsible for investigating and enforcing the national laws.

National Security Agency

A U.S. government agency responsible for global monitoring, collection, and processing of information and data for foreign intelligence and counterintelligence purposes.

Drug Enforcement Agency

A federal law enforcement agency in the United States tasked with combating drug smuggling and use within the country.