Contribution margin denotes:
A)The amount that remains after subtracting costs of goods sold from revenue.
B)The amount that remains after subtracting fixed costs from revenue.
C)The amount that remains after subtracting fixed costs from costs of goods sold.
D)The amount that remains after subtracting variable costs from revenue.
E)The amount that remains after subtracting variable costs from costs of goods sold.

Question

Quizplus · Accepted Answer

Contribution margin is the difference between revenue and variable costs. It represents the amount of revenue that contributes to covering fixed costs and generating profit.

Contribution Margin Denotes