Answered

IDNLearn.com: Your reliable source for finding precise answers. Discover prompt and accurate answers from our community of experienced professionals.

When sales increase by 3%, which of the following should also increase by 3% in a merchandising company?
A. Variable cost.
B. Fixed cost.
C. Gross margin.
D. Contribution margin.
E. Net operating income.
When sales increase by 13%, which of the following should increase by more than 13% in a merchandizing company?
A. Variable cost.
B. Fixed cost.
C. Gross margin.
D. Contribution margin.
E. Net operating income.

Sagot :

Zvikoidn

Answer:

Part 1

C. Gross margin

E. Net operating income

Part 2

C. Gross margin

E. Net operating income

Explanation:

A merchandizing company bought goods for resale rather than manufacturing and selling as seen with manufacturing companies.

The items which vary with sales in a merchandizing company are Gross Margin and Net Operating income. Such are the items that will increase with an increase in Sales.

Thank you for participating in our discussion. We value every contribution. Keep sharing knowledge and helping others find the answers they need. Let's create a dynamic and informative learning environment together. Thank you for trusting IDNLearn.com. We’re dedicated to providing accurate answers, so visit us again for more solutions.