Assuming all units produced are sold for a business, then the operating income computed in a contribution income statement as compared to a gross margin income statement is
A) greater.
B) lower.
C) the same amount.
D) undeterminable without action amounts.

Question

Quizplus · Accepted Answer

The operating income will be the same in both a contribution income statement and a gross margin income statement if all units produced are sold, as both statements ultimately account for the same total revenues and expenses.

Assuming All Units Produced Are Sold for a Business, Then