With the contribution margin income statement, variable costs are deducted firs

label Accounting
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

With the contribution margin income statement, variable costs are deducted first to determine what's left over to pay fixed costs. If the costs are fixed, shouldn't we be ensuring that we are making enough to cover those costs first before we concern ourselves with the variable costs?

May 8th, 2015

yes we deducted variable cost first to determine what's left over to pay fixed costs. Because we know that  contribution margin income statement is an income statement in which all variable expenses are deducted from sales to arrive at a contribution margin, from which all fixed expenses are then subtracted to arrive at the net profit or loss for the period.

May 8th, 2015

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
May 8th, 2015
...
May 8th, 2015
Oct 23rd, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer