Presented Below Are the Major Categories or Captions That Would

Essay

Presented below are the major categories or captions that would appear on an income statement prepared in the variable costing format:
Contribution margin Fixed costs
Income from operations Manufacturing margin Sales
Variable cost of goods sold
Variable selling and administrative expenses
a Arrange the above 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?