On a contribution margin income statement, sales revenue less variable expenses equals
A)operating expenses.
B)gross profit.
C)operating income.
D)contribution margin.

Question

Quizplus · Accepted Answer

The formula for contribution margin is sales revenue minus variable expenses. Therefore, on a contribution margin income statement, the result of this calculation is the contribution margin, not gross profit or operating income. Operating expenses are not calculated in the contribution margin format.

On a Contribution Margin Income Statement, Sales Revenue Less Variable