The Major Categories or Captions That Would Appear on an Income

Essay

The major categories or captions that would appear on an income statement prepared in the variable costing format are as follows:
Contribution margin
Fixed costs
Manufacturing margin
Operating income
Sales
Variable cost of goods sold
Variable selling and administrative expenses
a.Arrange these captions in the proper order in accordance with the variable costing concept.
b.Which of the captions represents (1) the difference between sales and the total of all the variable costs and expenses and (2) the remaining amount of revenue available for fixed manufacturing costs, fixed expenses, and net income?