TB MC Qu. 8-3 (Static) Which of the following income statement... Which of the following income statement formats is most commonly used with flexible budgeting? Multiple Choice Sales - Variable costs = Contribution margin; Contribution margin - Fixed costs = Net income Soles - Cost of goods sold = Gross margin; Gross margin - Operoting expenses = Net income Sales - Manufacturing costs - Selling and administrative costs = Net income None of these answers are correct