The contribution margin is:

A. Sales revenue minus fixed expenses.
B. Sales revenue minus operating expenses.
C. Sales revenue minus variable expenses.
D. Sales revenue minus cost of goods sold.

Question

10-01-2025
Business

High School

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The contribution margin is:

A. Sales revenue minus fixed expenses.
B. Sales revenue minus operating expenses.
C. Sales revenue minus variable expenses.
D. Sales revenue minus cost of goods sold.

Answer :

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joetalylor joetalylor · Answer 1 · 2024-08-11T17:21:37-04:00

The contribution margin is Sales Revenue minus fixed expenses. Hence correct option is 'a'.

The contribution margin is what?

The contribution margin displays the total amount of revenue that remains from variable costs to pay for fixed costs and make a profit for the business. This might be viewed as the percentage of sales that goes toward covering fixed costs.

Are contribution margin and net profit the same thing?

Revenue less cost equals net profit. Dollar per-unit contribution is the difference between the sale price per unit and the per-unit variable cost. Contribution is the part of sale money that goes toward covering fixed costs rather than being used to pay for variable expenditures.

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The contribution margin is:A. Sales revenue minus fixed expenses. B. Sales revenue minus operating expenses. C. Sales revenue minus variable expenses. D. Sales revenue minus cost of goods sold.

Answer :

The contribution margin is what?

Are contribution margin and net profit the same thing?

Other Questions

The contribution margin is:

A. Sales revenue minus fixed expenses.
B. Sales revenue minus operating expenses.
C. Sales revenue minus variable expenses.
D. Sales revenue minus cost of goods sold.