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:

Allergy Avoidance

Strategies or practices employed to prevent contact with substances that trigger allergic reactions.

Elimination Diet

A dietary plan in which certain foods are removed from the diet for a period of time to determine if symptoms improve, implicating those foods as a cause of allergic or other reactions.

Food Allergies

Allergic reactions that occur in response to consumption of certain foods, leading to immune system reactions.

Lactose Sensitivity

A condition where the body reacts negatively to lactose due to a deficiency in lactase, an enzyme needed to digest lactose.