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Select all that apply Which of the following items are found above the contribution margin on...

Select all that apply Which of the following items are found above the contribution margin on a contribution margin format in

Select all that apply Which of the following items are found above the contribution margin on a contribution margin format income statement? Fixed expenses Variable expenses O Sales Net operating income
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Correct Answer : b) Variable Expenses and c) Sales

Reason : Contribution is calculated by subtracting Variable expenses from Sales ( Contribution Margin = Sales - Variable expenses)

Sample format of Contribution Margin format Income Statement

Sales xxx
less: Variable expenses (xx)
Contribution Margin xxx
less : Fixed Expenses (xx)
Net Income xxx

Hope it helps. in case of any doubts or issues, please do comment below

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