Contribution margin is equal to ________.
A) sales minus variable costs
B) sales minus fixed costs
C) sales minus variable production costs
D) sales minus production costs

Question

Quizplus · Accepted Answer

Contribution margin represents the portion of the sales revenue that is available to cover fixed costs and contribute to profits after variable costs are deducted. Therefore, it is calculated as sales minus variable costs.

Contribution Margin Is Equal to ________