A corporation has the following managerial perspective of profitability for the current month:
Revenues $20,000
Variable costs:
Direct materials (variable) $2,000
Direct labor (variable) $2,000
Variable overhead $1,000
Variable operating expenses $2,000
Contribution margin $13,000
Fixed overhead $3,000
Fixed operating expenses $3,000
Profit $7,000
Shelly, a manager at Gas Corp., is preparing a profitability report for the lending officer at Gas Corp's bank. Using the provided information, which of the following statements are true about the financial perspective?
A. The contribution margin is $13,000.
B. Fixed overhead is $3,000.
C. Profit is $7,000.
D. All of the above.
