what is contribution income statement?

Question

how to make a contribution income statement?

Answer 1

Contribution Income Statement - Example

Sales Revenue $100,000

less Variable Costs

Direct Material 25,000

Direct Labor 30,000

Variable Manufg. Overhead Costs 5,000

Variable Selling, Gen & Admin Costs 10,000

Total Variable Costs 70,000

Contribution Margin 30,000

Fixed Manufg. Overhead Costs 5000

Fixed Selling, Gen & Admin Costs 2,500

Total Fixed Costs 7,500

Net Operating Income 22,500