Cost of goods sold is a variable cost. Selling expenses is 20% variable and 80% fixed, and administrative expense is 5% variable and 95% fixed.

C What is the W D. What does the contribution margin contribute Vlial gelleraily causes the difference between the income calculated under absorption costi versus income calculated under variable cost toward"? Aonly What You Have Learned L04: Prepare a Contribution Income Statement Fresh Baked Cookie Company sells cookies in a large shopping mall. The following multiple-step income statement was prepared for the year ending December 31, 2008. Fresh Baked Cookie Company Income Statement For the Year Ended December 31, 2008 Sales Cost of Goods Sold Gross Profit Operating Expense: Selling Expense Administrative Expense Operating Income $36,000 4,000 $32,000 $18,000 10,000 28,000 $ 4,000