The bottom line of a contribution margin report is net income.

Contribution Margin Report

A financial report detailing the variable costs deducted from net sales to determine the contribution margin, used in managerial accounting to make decisions.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue.

Understand the importance of cost-volume-profit analysis and the structure of income statements for making decisions.
Understand the concept of contribution margin and its utilization in assessing business performance.

Verified Answer

Jean Nobert Nerette8 days ago

Final Answer :

False

Explanation :

The contribution margin report shows the total contribution margin, which is the difference between total sales revenue and total variable costs. It does not include fixed costs or net income.

Learning Objectives

Understand the importance of cost-volume-profit analysis and the structure of income statements for making decisions.
Understand the concept of contribution margin and its utilization in assessing business performance.

The bottom line of a contribution margin report is net income.

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Learning Objectives

Learning Objectives

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