Contribution Margin Income Statement

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A contribution margin income statement is an income statement in which all variable expenses are deducted from sales to arrive at a contribution margin, from which all fixed expenses are then subtracted to arrive at the net profit or loss for the period. Thus, the arrangement of expenses in the income .Here is an example of a contribution margin income statement illustrating breakeven in dollars..The basic difference between a traditional income statement and a contribution margin income statement lies in the treatment of variable and fixed expenses. This difference of treatment of two types of costs affects the format and uses of two statements. In this article, we shall discuss two main differences of two income .