true and false

1. On the variable costing income statement, deduction of the variable cost of goods sold from sales yields manufacturing margin.
2. On the variable costing income statement, all of the fixed costs and expenses are deducted from the manufacturing margin.
3. On the variable costing income statement, all of the fixed costs and expenses are deducted from the contribution margin.
4. On the variable costing income statement, variable selling and administrative expenses are deducted from contribution margin to yield manufacturing margin.
5. On the variable costing income statement, variable cost and expenses are deducted from manufacturing margin to yield contribution margin.
6. On the variable costing income statement, the figure representing the difference between the contribution margin and income from operations is the fixed manufacturing costs and fixed selling and administrative expenses.
7. Under absorption costing, increases or decreases in income from operations due to changes in inventory levels could be misinterpreted to be the result of operating efficiencies or inefficiencies.