The contribution margin statement focuses attention on:
A)Revenues and variable costs.
B)Revenues and fixed costs.
C)Revenues and costs of goods sold.
D)Revenues only.
E)Revenues and total costs.

Question

Quizplus · Accepted Answer

The contribution margin statement is used to analyze a company's profitability by focusing on the revenues and variable costs associated with each product or service offered. This calculation helps to determine the contribution margin, or the amount of revenue that is left over after deducting variable costs, which can then be used to cover fixed costs and generate a profit. Therefore, the best choice is A, which includes revenues and variable costs.

The Contribution Margin Statement Focuses Attention On