A Simplified Version of the 1040 Form for Individual Income

question 169

Multiple Choice

A simplified version of the 1040 form for individual income tax if you have taxable income of less than $100,000 and no itemizing deductions is:

• A) Schedule A.
• B) Schedule B.
• C) 1040S.
• D) 1040A.
• E) 1040EZ.

---

Definitions:

Contribution Margin Ratio

The proportion of sales revenue that exceeds variable costs, indicating the percentage of each sales dollar available to cover fixed costs and provide profit.

Fixed Monthly Expenses

Regular expenses that do not vary in amount from month to month, such as rent and salaries.

Net Operating Income

A measure of a company's profitability from its regular, core business operations, excluding deductions of interest and taxes.

Contribution Margin Ratio

The percentage of each sale that remains after variable costs are deducted, indicating how much revenue is contributing to fixed costs and profit.