Computing the sales price less direct costs and variable costs is equal to the amount the sale contributes to profits refers to the contribution margin.

Name: Computing the sales price less direct costs and variable costs is equal to the amount the sale contributes to profits refers to the contribution margin.
Brand: Quizplus
Rating: 4.8 (52 reviews)

Question

Quizplus · Accepted Answer

The contribution margin is calculated by subtracting variable costs and direct costs from sales revenue, indicating how much a sale contributes to covering fixed costs and generating profit.

Computing the Sales Price Less Direct Costs and Variable Costs