We appreciate your visit to Contribution margin is A Sales revenue minus cost of goods sold B Sales revenue minus variable costs C All revenues minus all costs D Sales. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
Contribution margin is a business' sales revenue less its variable costs.
Contribution margin is a cost-accounting formula that calculates the revenue that is still available after covering fixed costs in order to assess a product's profitability.
What does the term "contribution margin" refer to?
The money that remains from sales after all variable costs related to creating a product have been paid is the contribution margin, also known as the gross margin, for a business. Your net income, or profit, is obtained by deducting fixed expenses like rent, equipment leases, and wages from your contribution margin.
How is the contribution margin determined?
Revenue - Variable Costs is the formula for calculating contribution margin. (Revenue - Variable Costs) / Revenue is the formula for calculating the contribution margin ratio.
To know more about margin visit:
https://brainly.com/question/7781429
#SPJ4.
Thanks for taking the time to read Contribution margin is A Sales revenue minus cost of goods sold B Sales revenue minus variable costs C All revenues minus all costs D Sales. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!
- Why do Businesses Exist Why does Starbucks Exist What Service does Starbucks Provide Really what is their product.
- The pattern of numbers below is an arithmetic sequence tex 14 24 34 44 54 ldots tex Which statement describes the recursive function used to..
- Morgan felt the need to streamline Edison Electric What changes did Morgan make.
Rewritten by : Barada
Final answer:
Contribution Margin is the Sales Revenue minus the Variable costs, capturing the profitability for each item sold. It is a critical measure in understanding product pricing and optimal production levels.
Explanation:
The Contribution Margin is defined as the Sales Revenue minus the Variable Costs. It is a measure of the profitability for individual items that a company makes and sells. Specifically, it is used to review the variable costs included in the production cost of an individual item.
In other words, it is used to analyze the margin contribution of each unit sold to the overall business profit. Understanding this concept is crucial for the firm to determine pricing and the optimal level of production, among others.
Learn more about Contribution Margin here:
https://brainly.com/question/31484547
#SPJ6
