Which of the following is a characteristic of a contribution

Which of the following is a characteristic of a contribution margin income statement?

Question options:

Variable and fixed expenses are combined into total expenses.

The amount of gross margin is shown.

When variable costs are less than sales revenue, there is a positive contribution margin.

Contribution margin is identified as the difference between sales revenue and total expenses.

	Variable and fixed expenses are combined into total expenses.
	The amount of gross margin is shown.
	When variable costs are less than sales revenue, there is a positive contribution margin.
	Contribution margin is identified as the difference between sales revenue and total expenses.

Solution

When variable costs are less than sales revenue, there is a positive contribution margin. Option 3 is correct