All variable costs are listed ________ on a contribution margin income statement.
A)above the gross profit line
B)above the contribution margin line
C)below the contribution margin line
D)below the gross profit line

Question

Quizplus · Accepted Answer

Variable costs are listed above the contribution margin line on a contribution margin income statement, as this statement is specifically designed to highlight the contribution margin, which is calculated by subtracting variable costs from sales revenue.

All Variable Costs Are Listed ________ on a Contribution Margin