The contribution margin is defined as the percent of each sales dollar that remains after satisfying fixed operating costs.

Name: The contribution margin is defined as the percent of each sales dollar that remains after satisfying fixed operating costs.
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Question

Quizplus · Accepted Answer

The statement is not correct. The contribution margin is the amount of each sales dollar that remains after variable costs are subtracted from the revenue. It is not a percentage, and it does not take into account fixed operating costs.

The Contribution Margin Is Defined as the Percent of Each