Chapter 21, Problem 18E

To determine

A contribution margin income statement is an income statement in which all variable expenses are reduced from sales value to get contribution margin. And all fixed expenses are deducted to get net profit/loss.

Contribution margin means sales price less variable costs.

Contribution margin ratio means the difference between a company's sales and variable expenses, expressed in a percentage terms.

The contribution margin ratio is a formula that calculates the percentage of contribution margin to net sales, expressed in a percentage terms.

To determine:

We have to determine the forecasted contribution margin income statement for 2018.