The difference between revenue and variable cost is called:
A) total contribution.
B) net profit.
C) EBIT.
D) EAT.

Name: The difference between revenue and variable cost is called: A) total contribution. B) net profit. C) EBIT. D) EAT.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

The difference between revenue and variable cost is known as contribution margin. When total contribution margin is subtracted from fixed costs, the result is the net profit. Therefore, the correct answer is A) total contribution.

The Difference Between Revenue and Variable Cost Is Called