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The formula for a contribution format income statement is Sales revenue Cost of goods sold Discretionary costs = Operating income. Sales revenue Variable costs =

The formula for a contribution format income statement is

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

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.

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