The Following Is Allison Corporation's Contribution Format Income Statement for December

question 49

Essay

The following is Allison Corporation's contribution format income statement for December 2014:
$\begin{array}{|l|r|}\hline \text { Sales } & \$ 800,000 \\\hline \text { Less: variable expenses } & 300,000 \\\hline \text { Contribution margin } & 500,000 \\\hline \text { Less: fixed expenses } & \$ 400,000 \\\hline \text { Operating income } & \$ 100,000 \\\hline\end{array}$

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Definitions:

Average Workweek

The average number of hours worked per week by employees in a particular sector or economy.

GDP

The Gross Domestic Product encompasses the entire monetary or market-based valuation of all finished outputs and services engendered within a country's boundaries over a fixed time period.

GDP Deflator

The GDP deflator is an economic metric that converts output measured at current prices into constant-dollar GDP, reflecting changes in the price level of all domestically produced goods and services in an economy.

Real GDP

The measure of a country's economic output adjusted for price changes and inflation, providing a more accurate reflection of an economy's size.