Which of the following appears as a line item in a contribution margin income statement?
A) Gross profit
B) Cost of goods sold
C) Operating income
D) Selling and administrative expenses

Question

Quizplus · Accepted Answer

Operating income appears in a contribution margin income statement, which focuses on the costs that vary with the level of production or sales, such as variable manufacturing costs, and separates them from fixed costs. Selling and administrative expenses are typically considered fixed costs and are subtracted after the contribution margin to calculate the operating income.

Which of the Following Appears as a Line Item in a Contribution