Question

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

Answer 1

Answer:

D. Sales revenue minus variable expenses.

Explanation:

The contribution margin represents the amount in dollar which is left from the selling price after subtracting the variables cost to produce the unit.

Thus, this remainder is used to pay up the fixed cost and make a gain.

Is the margin that each sale generates