Selling price of the product minus the variable cost of the product yields:
A) contribution margin.
B) profit.
C) fixed cost.
D) loss.

Name: Selling price of the product minus the variable cost of the product yields: A) contribution margin. B) profit. C) fixed cost. D) loss.
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Question

Quizplus · Accepted Answer

The contribution margin is calculated by subtracting the variable costs of producing a product from the selling price of the product. This figure is used to cover fixed costs and to contribute to profit.

Selling Price of the Product Minus the Variable Cost of the Product