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    Proper format for a contribution format.

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    Need help to properly format a contribution margin income statement.

    Ekland Division
    Contribution Margin Income Statement
    For the Quarter Ending March 31, 2011

    Sales (25,000 units x $100) 2,500,000
    Variable manufacturing expenses 1,562,000
    Gross Contribution Margin 938,000
    Less Variable marketing and admin expenses 625,000
    Contribution Margin 438,000
    Less fixed costs: 500,000
    Net Income: -187,000

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    Solution Preview

    The proper format is:
    Sales - Variable manufacturing costs = Gross contribution margin ...

    Solution Summary

    The solution provides an explanation as to the correct format for a contribution margin income statement. References are also provided.