The contribution margin income statement enables managers to view revenue and cost relationships on a per unit basis or as a percentage of sales.

Question

Quizplus · Accepted Answer

The contribution margin income statement separates costs into fixed and variable and allows managers to see how changes in sales volume affect the overall profitability of the company. It presents information in a way that facilitates decision-making and helps managers to identify areas where costs can be reduced or revenue increased.

The Contribution Margin Income Statement Enables Managers to View Revenue