21. If variable selling and administrative costs increased, how would the gross margin and contribution margin, respectively, be affected? Gross margin a. Not affect b. Not affect c. Decrease Contribution margin Increase Not affect Decrease Not affect Decrease d. Decrease Not affect

21. If variable selling and administrative costs increased, how would the gross margin and contribution margin, respectively, be affected? Gross margin a. Not affect b. Not affect c. Decrease Contribution margin Increase Not affect Decrease Not affect Decrease d. Decrease Not affect

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 11MC: When should a segment be dropped? A. only when the decrease in total contribution margin is less...

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Question

21. If variable selling and administrative costs increased, how would the gross margin and
contribution margin, respectively, be affected?
Gross margin
a. Not affect
Contribution margin
Increase
b. Not affect
Not affect
c. Decrease
d. Decrease
Decrease
Not affect
Decrease
Not affect

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