_____ is the excess of sales over variable costs.
A) Fixed cost
B) Contribution margin
C) Operating income
D) Incremental cost

Question

Quizplus · Accepted Answer

Contribution margin is the excess of sales over variable costs, and it represents the amount that is available to cover fixed costs and contribute to operating income. Operating income (C) is the end result of subtracting both fixed and variable costs from sales, while incremental cost (D) refers to the increase in cost resulting from a specific business decision or action. Fixed cost (A) is a cost that remains constant regardless of the level of production or sales.

_____ Is the Excess of Sales Over Variable Costs