In Income Statements Prepared Under Absorption Costing and Variable Costing $\quad$

Short Answer

In income statements prepared under absorption costing and variable costing, where would you find the terms contribution margin and gross profit? $\quad$$\quad$$\quad$$\quad$$\begin{array}{llcc} \underline{ \text { Contribution margin } }&\quad\quad\quad\quad\quad \underline{ \text { Gross profit } }\\\end{array}$
a) $\begin{array}{llcc} \text {in absorption-costing income statement } & \text { in variable-costing income statement} \\\end{array}$
b) $\begin{array}{llcc} \text { in absorption-costing income statement } & \text { in both income statements} \\\end{array}$
c) $\begin{array}{llcc} \text { in variable-costing income statement } & \text { in absorption-costing income statement } \\\end{array}$
d) $\begin{array}{llcc} \text { in both income statements } & \quad\quad\quad\quad\quad\text { In variable-costing income statement} \\\end{array}$