The contribution margin is equal to
A) sales minus cost of goods sold.
B) sales minus variable expenses.
C) sales minus fixed expenses.
D) sales minus operating expenses.

Name: The contribution margin is equal to A) sales minus cost of goods sold. B) sales minus variable expenses. C) sales minus fixed expenses. D) sales minus operating expenses.
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Question

Quizplus · Accepted Answer

The contribution margin is the amount by which sales exceed variable expenses. Therefore, the correct choice is B (sales minus variable expenses).

The Contribution Margin Is Equal to