On a contribution margin income statement,sales revenue less variable expenses equals:

Question

Quizplus · Accepted Answer

The contribution margin income statement is a tool used to analyze the profitability of a business by separating the cost behavior into fixed and variable costs. The contribution margin is the amount leftover after deducting variable expenses from sales revenue. Therefore, option A is the correct answer. Option B, gross profit, includes both variable and fixed expenses, while option C, operating income, deducts all expenses, including fixed expenses. Option D, expenses, is too broad and does not specify whether it refers to variable or fixed expenses.

On a Contribution Margin Income Statement,sales Revenue Less Variable Expenses