On a contribution margin income statement,all fixed costs are listed:
A)above the contribution margin line.
B)above the gross profit line.
C)below the contribution margin line.
D)below the gross profit line.

Question

Quizplus · Accepted Answer

On a contribution margin income statement, the variable expenses are deducted from the total revenue to arrive at the contribution margin. After that, fixed expenses are subtracted from the contribution margin to determine the net income. Hence, all fixed costs are listed below the contribution margin line.

On a Contribution Margin Income Statement,all Fixed Costs Are Listed