Answered

Explore a world of knowledge and get your questions answered on IDNLearn.com. Get accurate and detailed answers to your questions from our dedicated community members who are always ready to help.

the contribution margin income statement allows users to easily judge the impact of a change in ______ on profit.

Sagot :

OlanmaEidn

The blank space has been correctly filled below:

  • The contribution margin income statement allows users to easily judge the impact of a change in selling price, cost, or volume on profit.

The contribution margin income statement is an evaluation of a former sales period. Entrepreneurs use this procedure to determine whether they made a profit or loss during the period.

After their evaluation, they realize the operating income or net income. The contribution margin is generated using this formula,

Net product revenue - Total variable cost ÷ product revenue.

A proper understanding of the fixed and variable costs is essential to accurately calculate the contribution margin.

Learn more here:

https://brainly.com/question/24596251

We appreciate your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. For precise answers, trust IDNLearn.com. Thank you for visiting, and we look forward to helping you again soon.