please help me number it from 1-5 **Sorting Contribution Margin Income Statement Components****Objective:**Organize the elements of a contribution margin income statement in the correct hierarchical order, from top to bottom.**Items to Sort:**1. Sales Revenue2. Variable Costs3. Contribution Margin4. Fixed Costs5. Operating IncomeWhen aligning these components in the accurate sequence for a contribution margin income statement, they should be ordered as follows:1. **Sales Revenue**: Represents the total revenue generated from the sale of goods or services before any expenses are deducted.2. **Variable Costs**: Costs that vary directly with the level of production or sales volume (e.g., raw materials, direct labor).3. **Contribution Margin**: Calculated by subtracting variable costs from sales revenue. It indicates the portion of sales revenue that contributes to covering fixed costs and generating profit.4. **Fixed Costs**: Costs that remain constant regardless of the level of production or sales volume (e.g., rent, salaries).5. **Operating Income**: The profit earned from normal business operations after all variable and fixed costs have been deducted from sales revenue.**Visual Explanation:**The image provides a dropdown list with the following items to arrange:- Operating Income- Sales Revenue- Variable Costs- Contribution Margin- Fixed CostsTo ensure clarity and comprehension, it is essential to arrange these financial terms from the initial revenue generation step down to the final profit calculation:1. **Sales Revenue** (initial step, top)2. **Variable Costs** (subtracted from sales revenue to calculate contribution margin)3. **Contribution Margin** (sales revenue minus variable costs)4. **Fixed Costs** (subtracted from contribution margin to determine operating income)5. **Operating Income** (final profit measure, bottom)Understanding and organizing these components ensures accurate financial analysis and reporting within a business context.

In a Contribution Margin Income Statement, the variable cost are reduced from sales revenue to get…

Answered: Sort the following contribution margin…

Sort the following contribution margin income statement line items in the correct order from top down. V Operating income Sales revenue ✓ Variable costs ✓ Contribution margin Fixed costs

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 41E: Examine the graphs in Exercise 3-40. Required: As explained in the chapter, cost behavior patterns...

See similar textbooks

Similar questions

Matching Following are a number of key terms and concepts introduced in thechapter, along with a list of corresponding definitions. Match the appropriate letter for the key term or concept to each definition provided (items 1–12). Note thatnot all key terms and concepts will be used. Answers are provided at the end of thischapter.a. Cost–volume–profit analysisb. Cost formulac. Contribution margind. Contribution margin formatincome statemente. Linearity assumptionf. Contribution margin ratiog. Operating leverageh. Sales mixi. Break-even pointj. High–low techniquek. Managerial accountingl. Management processm. Variable costn. Fixed costo. Relevant rangep. Mixed (semivariable) costq. Cost behavior pattern____ 1. The proportion of total sales represented by various products or categoriesof products.____ 2. The difference between revenues and variable costs.____ 3. The concept that operating income changes proportionately more than revenues for any given change in revenues.____ 4. The…
Answer with example
.Which of the following is the format of the income statement that is MOST useful in decision-making? Select one: A.Contribution margin format B.Absorption costing format C.Single-step format D.Multiple-step format
Which of the following is the format of the income statement that is MOST useful in decision-making? Select one: A. Multiple-step format B. Absorption costing format C. Single-step format D. Contribution margin format
1. Provide examples of how cost–volume–profit analysis can be used for decision-making.2. Explain what is meant by the term ‘relevant range’. 3. Define the term ‘contribution margin’. 4. Define the term ‘profit–volume ratio’ and explain how it can be used for cost–volume–profit analysis. 5. Describe and distinguish between the three different approaches to presenting cost–volume–profit relationships in graphical format.
Explain how a contribution margin income statement can be used to determine profitability.
Using the table below, create a line chart in which profit or loss is plotted on the Y-axis and sales volume is plotted on the X-axis. This is commonly called a profit/volume chart. Although sales volume can be expressed in either units or dollars, use units for your chart. Complete the Chart Tickler Data Table to include a column for profits. Use this table as a basis for preparing the chart. Cost-Volume-Profit Analysis Data Section Income Statement in a Contribution Margin Fixed Variable Particulars Amounts Production costs Projected unit sales 120,000 Direct materials $2.30 Selling price per unit $16.00 Direct labor 4.70 Less Vairable Cost Factory overhead $225,000 3.00 Direct materials $2.30 Selling expenses Direct labor 4.70 Sales salaries & commissions 97,000 0.75 Factory overhead…
1. Multiple-Choice Question - FIFO When using FIFO, A) Identical costs go to the balance sheet and the income statement. B) Management uses average costs to assign to the balance sheet and the income statement. C) Older costs go to the income statement; newer costs go to the balance sheet. D) Older costs go to the balance sheet; newer costs go to the income statement. Explain for the answer chosen please.
An example of qualitative data is 1.product price 2.production cos 3.product features 4.prime cost
Which objective of cost accounting classifies and analyzes cost date for measuring efficiency? a. Guide to business policy b. Determination of selling price c. Cost control and reduction d. Measuring and improving performance
On the Cost-Volume-Profit chart graph, the area below the Total Costs Line and above the Total Revenues Line represents profit. TRUE FALSE
Best choice