A contribution format income statement allows a manager to
A)assess the impact of product costs on net profit.
B)assess the impact of sales volume on gross margin.
C)assess the impact of sales volume on operating income.
D)assess the impact of profit margin on product costs.

Question

Quizplus · Accepted Answer

A contribution format income statement separates fixed and variable costs, making it easier to assess the impact of sales volume changes on operating income.

A Contribution Format Income Statement Allows a Manager to