Contribution is defined as the amount by which price exceeds variable cost per unit. Contribution stated as a percent of price is known as contribution margin.

Name: Contribution is defined as the amount by which price exceeds variable cost per unit. Contribution stated as a percent of price is known as contribution margin.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is a correct statement. Contribution margin is calculated by dividing contribution by price and expressing it as a percentage.

Contribution Is Defined as the Amount by Which Price Exceeds