FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Step 1: Contribution format income statement
The contribution format income statement helps to distribute the fixed cost and variable cost. A contribution margin is the excess value of sales revenue over the variable cost. There is also an available amount to recover the fixed cost. Net operating income can be calculated by deducting the fixed cost from the contribution margin. Fixed cost can be traceable fixed cost or common fixed cost.
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