The following data relate to Lebeaux Corporation for the year just ended:

Which of the following statements is correct?
A) Lebeaux's variable-costing income statement would show a gross margin of $270,000.
B) Lebeaux's variable costing income statement would show a contribution margin of $330,000.
C) Lebeaux's absorption-costing income statement would show a contribution margin of $330,000.
D) Lebeaux's absorption costing income statement would show a gross margin of $330,000.
E) Lebeaux's absorption-costing income statement would show a gross margin of $145,000.

Question

The following data relate to Lebeaux Corporation for the year just ended:

Which of the following statements is correct?
A) Lebeaux's variable-costing income statement would show a gross margin of $270,000. 
B) Lebeaux's variable costing income statement would show a contribution margin of $330,000. 
C) Lebeaux's absorption-costing income statement would show a contribution margin of $330,000. 
D) Lebeaux's absorption costing income statement would show a gross margin of $330,000. 
E) Lebeaux's absorption-costing income statement would show a gross margin of $145,000.

Quizplus · Accepted Answer

The Answer of The following data relate to Lebeaux Corporation for the year just ended:

Which of the following statements is correct?
A) Lebeaux's variable-costing income statement would show a gross margin of $270,000. 
B) Lebeaux's variable costing income statement would show a contribution margin of $330,000. 
C) Lebeaux's absorption-costing income statement would show a contribution margin of $330,000. 
D) Lebeaux's absorption costing income statement would show a gross margin of $330,000. 
E) Lebeaux's absorption-costing income statement would show a gross margin of $145,000.

The Following Data Relate to Lebeaux Corporation for the Year