Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What would be the best answer out of these options? What is the relationship between the profit equation and the contribution margin income statement? Select

image text in transcribed

What would be the best answer out of these options?

image text in transcribed
What is the relationship between the profit equation and the contribution margin income statement? Select one: Select one: ll a. In the profit equation, costs are accounted for in total sales by addition to yield profit. In the contribution margin income statement, variable costs are first netted from total costs, yielding a contribution margin, from which fixed costs are then netted out to yield profit. b. In the contributions margin equation, variable and fixed costs are both netted from total sales to yield profit. In the profit margin income statement, variable costs are first netted from total sales, yielding a contribution margin, from which fixed costs are then netted out to yield profit. c. In the profit equation, variable and fixed costs are both netted from total sales to yield profit, In the contribution margin income statement, variable costs are first netted from total sales, yielding a contribution margin, from which fixed costs are then netted out to yield profit. d. In the profit equation, fixed costs are netted from total sales to yield net profit, from which variable costs are netted out to yield profit. In the contribution margin income statement, variable costs are first netted from total sales, yielding a contribution margin, from which fixed costs are then netted out to yield profit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Managerial Accounting Concepts

Authors: Thomas P Edmonds, Philip R Olds

9th Edition

1259969509, 9781259969508

More Books

Students also viewed these Accounting questions

Question

1. What will happen in the future

Answered: 1 week ago

Question

3. Avoid making mistakes when reaching our goals

Answered: 1 week ago