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Author Question: A contribution margin format income statement presents all costs by (Read 34 times)

amymoore

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on: Feb 5, 2023

Question 1

Assume sales of $10,000, variable costs of $7,000, and fixed costs of $2,000. Calculate contribution margin and operating income.
◦ Contribution margin = $8,000; Operating income = $1,000
◦ Contribution margin = $6,000; Operating income = $1,000
◦ Contribution margin = $5,000; Operating income =$1,000
◦ Contribution margin = $3,000; Operating income = $1,000

Question 2

A contribution margin format income statement presents all costs by
◦ function rather than behavior.
◦ cost classification rather than behavior.
◦ behavior rather than by function.
◦ category rather than behavior.
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by amymoore on Feb 5, 2023

KobyRhoads

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Reply #1 on: Feb 5, 2023
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amymoore

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Reply 2 on: Feb 5, 2023
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