Presented below are the major categories or captions that would appear on an income statement prepared in the variable costing format:
Contribution margin
Fixed costs
Income from operations
Manufacturing margin
Sales
Variable cost of goods sold
Variable selling and administrative expenses
(a) Arrange the above captions in the proper order in accordance with the variable costing concept.
(b) Which of the captions represents:
(1) the difference between sales and the total of all the variable costs and expenses
(2) the remaining amount of revenue available for fixed manufacturing costs, fixed expenses, and net income?

Question

Presented below are the major categories or captions that would appear on an income statement prepared in the variable costing format: 
Contribution margin 
Fixed costs 
Income from operations 
Manufacturing margin 
Sales 
Variable cost of goods sold 
Variable selling and administrative expenses 
(a) Arrange the above captions in the proper order in accordance with the variable costing concept. 
(b) Which of the captions represents:
(1) the difference between sales and the total of all the variable costs and expenses 
(2) the remaining amount of revenue available for fixed manufacturing costs, fixed expenses, and net income?

Quizplus · Accepted Answer

The Answer of Presented below are the major categories or captions that would appear on an income statement prepared in the variable costing format: 
Contribution margin 
Fixed costs 
Income from operations 
Manufacturing margin 
Sales 
Variable cost of goods sold 
Variable selling and administrative expenses 
(a) Arrange the above captions in the proper order in accordance with the variable costing concept. 
(b) Which of the captions represents:
(1) the difference between sales and the total of all the variable costs and expenses 
(2) the remaining amount of revenue available for fixed manufacturing costs, fixed expenses, and net income?

Presented Below Are the Major Categories or Captions That Would