Question

Which of the following terms do not appear on the contribution margin format income statement?

a) contribution margin
b) operating margin
c) gross profit
d) variable expenses

Answer 1

The term that does not appear on the contribution margin format income statement is gross profit.

Step-by-step explanation:

The term that does not appear on the contribution margin format income statement is gross profit. The contribution margin format income statement is used to analyze the profitability of a company's products and services. It presents the revenues, variable expenses, and the contribution margin of each product or service. The terms contribution margin, operating margin, and variable expenses all appear on the contribution margin format income statement and are used to calculate the profitability and cost structure of the company.