Contribution Format Income Statement

This video discusses the Contribution Format Income Statement in Managerial Accounting.
The Contribution Format Income Statement lists costs by their behavior (whether they are fixed or variable) not by their function. Thus, it has the following format:
Revenue - Variable Costs = Contribution Margin - Fixed Costs = Operating Profit
This is advantageous because it allows you to easily calculate the company's Contribution Margin Ratio, which can be used to calculate the breakeven point with Cost-Volume-Profit Analysis. You can also easily calculate the Degree of Operating Leverage, which is the Contribution Margin divided by the Operating Profit.
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[@yospearson3128]

SG&A is the acronym for selling, general and administrative. SG&A are the operating expenses incurred to 1) promote, sell, and deliver a company's products and services, and 2) manage the overall company.

[@twinqlez1]

thanks for the reply

[@erosmaia13]

This is gold ! Congratulations

[@yinyin7614]

Very helpful video.

[@yomnarizvi1992]

Thanks a lot for your videos :)

[@JohnSmith-yn7jz]

Thank you.

[@moreofjenille1757]

tysmmmm
😁

[@marianneomalay9217]

What's SG&A?

[@jamesdawson4837]

sales and administrative expenses

[@VarunSingh-iu1eb]

Selling, General & Administrative expenses.

[@yospearson3128]

also a good way to think of SG&A is it's the period costs

[@danchamberlin5028]

the sound is not good I am quite disappointed