Under the contribution income statement, a company's contribution margin will be: A. Higher if fixed SG&A costs decrease. B. Higher if variable SG&A costs increase. C. Lower if fixed manufacturing overhead costs decrease. D. Lower if variable manufacturing overhead costs increase.

Contribution is computed as total sales less variable expenses. Contribution margin will increase if sales generated is more than variable expenses and vice-versa.

Fixed expenses are not considered in calculation of contribution. Option A and C are incorrect as fixed expenses are not considered.

Option B is incorrect as contribution margin will not be lower if variable selling, general and administrative (S,G &A) expenses increase.

Therefore, contribution margin will be lower is manufacturing overhead costs increase.

Under the contribution income​ statement, a​ company's contribution margin will​ be: A. Higher if fixed​ SG&A costs decrease. B. Higher if variable​ SG&A costs increase. C. Lower if fixed manufacturing overhead costs decrease. D. Lower if variable manufacturing overhead costs increase.

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Under the contribution income statement, a company's contribution margin will be: A. Higher if fixed SG&A costs decrease. B. Higher if variable SG&A costs increase. C. Lower if fixed manufacturing overhead costs decrease. D. Lower if variable manufacturing overhead costs increase.