Explore BrainMass

National Linen Contribution Margin uses and statement

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

What makes a contribution income statement unique? Using the company (National Linen) discuss how a contribution income statement could be used to improve planning in that particular company.

© BrainMass Inc. brainmass.com October 25, 2018, 8:59 am ad1c9bdddf

Solution Preview


A contribution margin income statement sorts expenses by their behavior, either variable or fixed. A traditional income statement sorts by product or nonproduct. See exhibits below:

-COGS < --- product costs
=Gross Profit
-Operating expenses < -- non product costs
=Operating income

-variable costs < --- includes variable product and nonproduct costs
= ...

Solution Summary

Your discussion is 269 words and shows classic traditional and contribution margin formats and discusses several ways National Linen uses a contribution margin to make decisions.

See Also This Related BrainMass Solution

Find and analyze a 4 year sales and profit data for a major retail corporation

As the fund manager for a large mutual fund, you are preparing for a conference call with all your major investors. You plan to email everyone with an attachment that will serve as a guide for the upcoming call. You know investors time is limited so you want to be focused in your brief report.

Find a 4 year sales and profit data for a major retail corporation (Macy's).

View Full Posting Details