Hi.

When sales increase by 15%, which of the following should also increase by 15% in a merchandizing company?

-variable costs;

-fixed cost;

-gross margin;

-contribution margin;

-net operating income?

When sales increase by 15%, which of the following should increase by more than 15% in a merchandizing company?

-variable costs;

-fixed cost;

-gross margin;

-contribution margin;

-net operating income?

Thank you.