Traditional Format Comparison of the Contribution Income Statement with the Traditional Income Statement Sales Cost of goods sold Sales Variable expenses Contribution margin Fixed expenses Net operating income Using information from the above Table, which one is NOT true? Gross margin Selling & admin. expenses Net operating income Multiple Choice O O Contribution Format $ 100,000 70,000 $ 30,000 20,000 $ 10,000 Contribution I/S format categorizes costs by cost function Traditional I/S format is used for external reporting $ 100,000 60,000 $ 40,000 30,000 $ 10,000 Contribution Margin Ratio ("CM Ratio") is 0.4

Using information from the above Table, which one is NOT true? Multiple Choice Contribution l/S format categorizes costs by cost function Traditional us format is used for external reporting Contribution Margin Ratio ("CM Ratio") is 0.4