What is the contribution margin?

1===5A–1 What is the basic difference between absorption costing and variable costing?
1===5A–2 Are selling and administrative expenses treated as product costs or as period costs under variable costing?
1===5A–3 Explain how fixed manufacturing overhead costs are shifted from one period to another under absorption costing.
1===5A–4 What are the arguments in favor of treating fixed manufacturing overhead costs as product costs?
1===5A–5 What are the arguments in favor of treating fixed manufacturing overhead costs as period costs?
1===5A–6 If the units produced and unit sales are equal, which method would you expect to show the higher net operating income, variable costing or absorption costing? Why?

1===5A–7 If the units produced exceed unit sales, which method would you expect to show the higher net operating income, variable costing or absorption costing? Why?
1===5A–8 If fixed manufacturing overhead costs are released from inventory under absorption costing, what does this tell you about the level of production in relation to the level of sales?
1===5A–9 Under absorption costing, how is it possible to increase net operating income without increasing sales?