All else being equal,which of the following would cause net income to increase?

Question

Quizplus · Accepted Answer

Decreasing total fixed costs would cause net income to increase since there would be less expense to offset revenue. Option A is incorrect because an increase in total variable costs would decrease net income. Option C is incorrect because a decrease in sales price per unit would decrease revenue and therefore decrease net income. Option D is incorrect because a decrease in contribution margin would decrease gross profit and therefore decrease net income.

All Else Being Equal,which of the Following Would Cause Net