Question

The contribution format for an income statement? A. requires the calculation of the gross margin subtotal....

The contribution format for an income statement?

A. requires the calculation of the gross margin subtotal.

B. provides better support for decision making than a traditional format.

C. highlights product and period costs.

D. is always used in external reporting.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1


0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Give a numerical example for Variable Costing Contribution Format Income Statement that is used for the...
Give a numerical example for Variable Costing Contribution Format Income Statement that is used for the internal decision-making and compare with the traditional income statement prepared by absorption costing that is used for the external reporting. Prepare the two income statements assuming the following 1- There is no inventory. 2- There is beginning inventory. 3- There is end of period inventory 4- Explain and comment on the reasons for differences in the results
Contribution margin differs from Gross margin in the following way: a. Contribution margin always is larger...
Contribution margin differs from Gross margin in the following way: a. Contribution margin always is larger than Gross margin. b. Contribution margin is based on revenue and product costs. c. Contribution margin varies directly with sales d. Contribution margin cannot be used directly in breakeven analysis
Which of the following is not true about the contribution margin format income statement A) the...
Which of the following is not true about the contribution margin format income statement A) the costing method used is referred to as variable costing B) contribution margin equals total sales less total variable costs C) total fixed costs include some selling and admin costs D) net income equals contribution margin less total fixed costs E) variable costs do not include sales commissions
Assignment Question(s):​​​​​​(Marks5) Q1. Give a numerical example for Variable Costing Contribution Format Income Statement that is...
Assignment Question(s):​​​​​​(Marks5) Q1. Give a numerical example for Variable Costing Contribution Format Income Statement that is used for the internal decision-making and compare with the traditional income statement prepared by absorption costing that is used for the external reporting. Prepare the two income statements assuming the following (2.5 marks) 1- There is no inventory. 2- There is beginning inventory. 3- There is end of period inventory 4- Explain and comment on the reasons for differences in the results Answer: Q2....
What is the format of the contribution margin version of the income statement? What are the...
What is the format of the contribution margin version of the income statement? What are the three equations for calculating the break-even point? What are the three equations for calculating target profit?
DartmountCorporation has provided its contribution format income statement for June. The company produces and sells a...
DartmountCorporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (2,900 units) = $269,700. Variable costs = $107,300. Contribution margin = $162,400. Fixed costs = $137,100. Operating profit = $25,300. If the company sells 3,100 units, its total contribution margin should be closest to: A) $173,600. B) $162,400. C) $181,000. D) $27,045.
Problem 12-20 Prepare a contribution margin format income statement; answer what-if questions LO 7, 8, 9,...
Problem 12-20 Prepare a contribution margin format income statement; answer what-if questions LO 7, 8, 9, 12 Shown here is an income statement in the traditional format for a firm with a sales volume of 16,500 units: Revenues $ 198,000 Cost of goods sold ($11,000 + $2.85/unit) 58,025 Gross profit $ 139,975 Operating expenses: Selling ($2,000 + $1.25/unit) 22,625 Administration ($4,750 + $0.35/unit) 10,525 Operating income $ 106,825 Required: a. Prepare an income statement in the contribution margin format. b....
Shown here is an income statement in the traditional format for a firm with a sales...
Shown here is an income statement in the traditional format for a firm with a sales volume of 7,600 units. Cost formulas also are shown: Revenues $ 35,000 Cost of goods sold ($5,900 + $2.05/unit) 21,480 Gross profit $ 13,520 Operating expenses: Selling ($1,160 + $0.08/unit) 1,768 Administration ($3,900 + $0.20/unit) 5,420 Operating income $ 6,332 Required: a. Prepare an income statement in the contribution margin format. b. Calculate the contribution margin per unit and the contribution margin ratio. (Do...
Problem 12-21 Prepare a contribution margin format income statement; calculate break-even point LO 7, 8, 9,...
Problem 12-21 Prepare a contribution margin format income statement; calculate break-even point LO 7, 8, 9, 11 Presented here is the income statement for Big Shot, Inc., for the month of May: Sales $ 60,500 Cost of goods sold 52,100 Gross profit $ 8,400 Operating expenses 15,700 Operating loss $ (7,300 ) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 16%. Required: a. Rearrange the preceding income statement to...
What is the relationship between revenue and net income on the income statement? A as contribution...
What is the relationship between revenue and net income on the income statement? A as contribution margin increases both revenue and net income will always increase B. as revenue increases, net income will always increase C none of these D as net income increases, revenue will always increase E as period costs decrease both revenue and net income will always increase
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT