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If a contribution margin income statement reports $14,000 of income and $6,000 of dep
If a contribution margin income statement reports $14,000 of income and $6,000 of depreciation expense, how much income will be reported on a traditional income statement?
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Trick question; income is income, expense is expense. There is inadequate information here as to whether the organisation uses the absorption costing method or the direct costing method as contribution margin is a term usually associated with direct or marginal costing. Personally I would say a number larger that $20,000 as all expenses have not been identified
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