In break-even analysis the contribution margin is defined as:
A) sales minus variable costs.
B) sales minus fixed costs.
C) fixed costs minus variable costs.
D) fixed costs minus amortization.

Question

Quizplus · Accepted Answer

The contribution margin is the amount of revenue that remains after deducting variable costs from total sales. It is calculated as sales minus variable costs.

In Break-Even Analysis the Contribution Margin Is Defined As