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The margin contribution income statement is a great tool in decision making for any kind of business. By using this statement, a managerial accountant can

The margin contribution income statement is a great tool in decision making for any kind of business. By using this statement, a managerial accountant can support decision that would drop or add a product or segment in manufacturing. By separating the cost behavior, the manager now has the tools to make a decision that will impact the operating income. Should the company take on an additional special order for a client? The contribution margin income statement come help figure out those numbers. Said company, wants to outsource (or considering it), the contribution income statement can be useful in the management process. All the decision made in this chapter are based on the contribution margin. Whats also helpful is knowing whether the company is a price taker or price setter. This will help the company make decisions even better. Revenue difference is the basis for this discussion.

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