Under variable costing, a change in the level of sales will affect the contribution margin reported on the variable income statement for the period.

Name: Under variable costing, a change in the level of sales will affect the contribution margin reported on the variable income statement for the period.
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Quizplus · Accepted Answer

Under variable costing, the contribution margin is calculated by subtracting variable costs from sales. Therefore, a change in the level of sales directly affects the contribution margin reported.

Under Variable Costing, a Change in the Level of Sales