Which of the Following Appears as a Line Item in a Contribution

question 142

Multiple Choice

Which of the following appears as a line item in a contribution margin income statement?

• A) Gross profit
• B) Total cost of goods sold
• C) Operating income
• D) Total selling and administrative expenses

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Definitions:

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing to buy at each price point.

Total Revenue

The total amount of money generated by a business from the sale of its goods or services before any costs or expenses are subtracted.

Marginal Cost

The supplementary cost derived from creating an additional good or service unit.

Pure Monopolist

An entity that is the sole provider of a product or service in a market, with no close substitutes, allowing for control over prices.