If sales revenue stays the same but the contribution margin ratio decreases, then:

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The contribution margin ratio is the percentage of each sales dollar that goes towards covering fixed costs and then towards profit. If the contribution margin ratio decreases, it means that a smaller percentage of each sales dollar is available to cover fixed costs and contribute to profit. Therefore, if sales revenue stays the same, net operating income will decrease because less money is going towards covering fixed costs and contributing to profit.

If Sales Revenue Stays the Same but the Contribution Margin