Reference no: EM132633292

Steam Corporation has the following managerial perspective of profitability for the current month:

Revenues $10,000

Variable Costs

Direct Materials (Variable) $1,000

Direct Labor (Variable) $1,000

Variable Overhead $500

Variable Operating Expenses $1,000

Contribution Margin $6,500

Fixed Overhead $1,500

Fixed Operating Expenses $3,000

Profit $2,000

Gina, a manager at Steam Corp., is preparing a profitability report for the lending officer at Steam Corp's bank.

Problem 1: Using the provided information, which of the following statements are true about the financial perspective?