Easy true false accounting

In a contribution margin format income statement, all fixed costs are subtracted from the contribution margin to obtain operating income.

True

False

If you increase sales volume, not only sales will increase, but variable costs will increase too.

True

False

In a traditional income statement, the cost of goods sold includes both fixed and variable manufacturing costs.

True

False

If the contribution margin ratio is 20%, then variable cost as a percentage of sales is 70%.

True

False