7&8

Question 7 (2 points) When a company produces more units than it sells, absorption costing operating Income will be higher than variable costing operating income True False Question 8 12 points) The contribution margin ratio explains the percentage of each sales dollar that contributes towards fixed costs and generating profit contributes towards operating expenses contributes towards variable costs contributes towards period expenses MacBook Air 3 T w E IR H D F S B .Z N