For its top managers, Goldberg Industries formats its income statement as follows:
GoldBerg Industries
Contribution Margin Income Statement
Three Months Ended October 31, 2019
Net Sales Revenue
Variable Costs
Contribution Margin
Fixed Costs
Operating Income
$ 490,200
294,120
196,080
173,000
$ 23,080
What would be the outcome if this contribution margin income statement were prepared at the $377,000
sales level?
(*The proportion of each sales dollar that goes toward variable costs is consistent within the relevant
range.)
A. Total Sales $377,000
B. Operating Loss $22,200
C. Operating Income $23,080
D. Operating Income $269,130