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The formula for a contribution format income statement is

swimchk13

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The formula for a contribution format income statement is

The formula for a contribution format income statement is

▸ Sales revenue - Variable costs = Contribution margin - Fixed costs = Operating income.

▸ Sales revenue - Discretionary costs = Gross profit - Committed costs = Operating income.

▸ Sales revenue - Step costs = Contribution margin - Fixed costs = Operating income.

▸ Sales revenue - Cost of goods sold - Discretionary costs = Operating income.

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Managerial Accounting

Edition: 4^th

Author: Davis

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Helped a lot

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