Look at the Contribution Margin Income Statements for the following two companies:

CM Income Statement

Company A Company B

Sales $$2,000,000$ $$2,000,000$

Variable Costs $$100,000$ $$1,400,000$

Contribution Margin $$1,900,000$ $$600,000$

Less Fixed Costs $ $1,600,000$ $$300,000$

Total Income Before Tax $ $300,000$ $$300,000$

If sales increase by $10\%$ for both companies, income before taxes will be highest for $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

A$.$

Company B

B$.$

Company A

C$.$

the same for both companies

D$.$

both companies net income before taxes will decline.