Contribution margin income statement deducts which first from sales

Contribution margin income statement deducts which first from sales

Contribution margin income statement deducts which first from sales?

A. All manufacturing fixed cost

B. Total variable cost (production+variable SG&A)

C. Period fixed operating expense

D. Income tax expense

Answer: B

Rationale: CM format: Sales-Total Variable Cost=CM; CM-Fixed Cost=Operating Income.