The Formula for a Contribution Format Income Statement Is

Multiple Choice

The formula for a contribution format income statement is

A) Sales revenue - Step costs = Contribution margin - Fixed costs = Operating income.
B) Sales revenue - Cost of goods sold - Discretionary costs = Operating income.
C) Sales revenue - Discretionary costs = Gross profit - Committed costs = Operating income.
D) Sales revenue - Variable costs = Contribution margin - Fixed costs = Operating income.