Which of the following is a characteristic of a contribution margin income state
ID: 2395362 • Letter: W
Question
Which of the following is a characteristic of a contribution margin income statement?
Question options:
Variable and fixed expenses are combined into total expenses.
The amount of gross margin is shown.
When variable costs are less than sales revenue, there is a positive contribution margin.
Contribution margin is identified as the difference between sales revenue and total expenses.
Variable and fixed expenses are combined into total expenses.
The amount of gross margin is shown.
When variable costs are less than sales revenue, there is a positive contribution margin.
Contribution margin is identified as the difference between sales revenue and total expenses.
Explanation / Answer
When variable costs are less than sales revenue, there is a positive contribution margin. Option 3 is correct