Janson Company prepares an income statement for financial accounting purposes using the traditional income statement format, as well as an income statement for managerial accounting purposes using the contribution margin format.Selected information from both income statement formats are as follows: $$\begin{array} { l r }
\text { Revenules } & \$ 200,000 \
\text { Cost of goods sold } & \$ 40,000 \
\text { Contribution margin ratio } & 50 \% \
\text { Operating expenses } & \$ 120,000 \
\text { Fixed expenses } & \$ 60,000
\end{array}$$ Using the traditional income statement format, operating income is:

Question

Janson Company prepares an income statement for financial accounting purposes using the traditional income statement format, as well as an income statement for managerial accounting purposes using the contribution margin format.Selected information from both income statement formats are as follows: $$\begin{array} { l r } 
\text { Revenules } & \$ 200,000 \
\text { Cost of goods sold } & \$ 40,000 \
\text { Contribution margin ratio } & 50 \% \
\text { Operating expenses } & \$ 120,000 \
\text { Fixed expenses } & \$ 60,000
\end{array}$$ Using the traditional income statement format, operating income is:

Quizplus · Accepted Answer

The Answer of Janson Company prepares an income statement for financial accounting purposes using the traditional income statement format, as well as an income statement for managerial accounting purposes using the contribution margin format.Selected information from both income statement formats are as follows: $$\begin{array} { l r } 
\text { Revenules } & \$ 200,000 \
\text { Cost of goods sold } & \$ 40,000 \
\text { Contribution margin ratio } & 50 \% \
\text { Operating expenses } & \$ 120,000 \
\text { Fixed expenses } & \$ 60,000
\end{array}$$ Using the traditional income statement format, operating income is:

Janson Company Prepares an Income Statement for Financial Accounting Purposes