Which of the following appears as a line item in a contribution margin income statement?
A) Gross profit
B) Total cost of goods sold
C) Operating income
D) Total selling and administrative expenses

Question

Quizplus · Accepted Answer

Contribution margin income statement is a statement that shows the contribution margin of each product and the total contribution margin earned by the company. Operating income (also called operating profit) is the difference between the contribution margin and the fixed costs. Therefore, operating income appears as a line item in a contribution margin income statement. Gross profit, total cost of goods sold, and total selling and administrative expenses are all used in a traditional income statement, not a contribution margin income statement.

Which of the Following Appears as a Line Item in a Contribution