The contribution margin is calculated as
A)sales revenue less cost of goods sold.
B)sales revenue less discretionary costs.
C)sales revenue less committed costs.
D)sales revenue less total variable costs.

Question

Quizplus · Accepted Answer

Contribution margin is the amount of revenue that remains after deducting all the variable costs associated with the production or sale of a product or service. Therefore, the best choice is D, which shows that contribution margin is calculated as sales revenue less total variable costs.

The Contribution Margin Is Calculated as