Question: In a contribution income statement: All fixed costs are grouped together and subtracted from gross profit. Net income plus all fixed expenses equal the contribution

In a contribution income statement:

All fixed costs are grouped together and subtracted from gross profit.

Net income plus all fixed expenses equal the contribution margin.

The contribution margin is computed as the difference between sales revenue and fixed costs.

The gross margin is computed as the difference between sales revenue and the cost of goods sold.

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