Which of the Following Is the Income Statement Formula for the Variable

Multiple Choice

Which of the following is the income statement formula for the variable costing method?

A) Sales Revenue - Cost of Goods Sold = Gross Margin - All Fixed Expenses = Operating Income
B) Sales Revenue - All Variable Costs = Contribution Margin - All Fixed Expenses = Operating Income
C) Sales Revenue - Variable Manufacturing Costs = Contribution Margin - Fixed Manufacturing Costs = Operating Income
D) Sales Revenue - Cost of Goods Sold = Gross Margin - Selling and Administrative Expenses = Operating Income