Under variable costing, contribution margin is equal to:
A) Sales - Variable Costs
B) Sales - Fixed Costs
C) Sales - Variable Costs - Fixed Costs
D) Contribution Margin - Fixed Costs
E) Variable costing does not calculate contribution margin

Question

Quizplus · Accepted Answer

Contribution margin under variable costing is calculated as Sales minus Variable Costs. This figure is used to cover fixed costs and then to contribute to profit.

Under Variable Costing, Contribution Margin Is Equal To