Which of the Following Income Statement Formats Is Most Commonly

Multiple Choice

Which of the following income statement formats is most commonly used with flexible budgeting?

A) Sales - Variable costs = Contribution margin;Contribution margin - Fixed costs = Net income
B) Sales - Cost of goods sold = Gross margin;Gross margin - Operating expenses = Net income
C) Sales - Manufacturing costs - Selling and administrative costs = Net income
D) None of these answers is correct.