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how to prepare an income statement using variable costing

how to prepare an income statement using variable costing

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Answer #1

Sales Revenue = XXXX

Less: Variable Expenses

Variable cost of goods sold = XXX

Variable selling and admin cost = XXX

Total Variable Expenses = (XXXX)

Contribution Margin = XXXX

Less: Fixed Expenses

Fixed Manufacturing Overhead XXX

Fixed selling & Admin Expenses XXX

Total Fixed Expenses = (XXXX)

Net Operating Income (Loss) = XXX

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