Contribution Format Income Statement Template

What Is a Contribution Format Income Statement?

A Contribution Format Income Statement is an internal financial document of a company that shows the distribution of their business expenses - both variable and fixed costs - and the difference between them. It will allow the finance department to manage the revenue of the business by controlling costs and make crucial decisions planning for the future of the organization. If the revenue increases or decreases, the contribution margin will increase or decrease accordingly while the fixed expenses remain the same.

You may download a Contribution Format Income Statement template through the link below. It should list all the income of the reporting period you need (typically, a statement like this is drafted once a month), calculate the contribution margin between the revenue and the variable costs (which include materials and labor), and compute the net profit of the business - simply subtract the fixed expenses of the business such as rent, salaries, taxes from the profit you have made once the variable expenses are dealt with. Keep a copy of the document in your records since it is not typically disclosed to potential business partners or investors.

Still looking for a particular template? Take a look at the related templates below:

• Basic Income Statement Template;
• Budgeted Income Statement Template;
• Accounting Journal Template.