Contribution margin isOa. profitOb. the excess of sales over variable costsOc.Oc. another term for volume in the "cost-volume-profit" analysisOd. the same as sales revenue

The formula Contribution= sales - variable cost

Answered: Contribution margin is

Business

Accounting

Contribution margin is

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 17MC: In the cost equation Y=a+bx, Y represents which of the following? A. fixed costs B. variable costs...

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Question

Contribution margin is
Oa. profit
Ob. the excess of sales over variable costs
Oc.
Oc. another term for volume in the "cost-volume-profit" analysis
Od. the same as sales revenue

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The contribution margin is the a. amount by which sales exceed total fixed cost. b. difference between sales and total cost. c. difference between sales and operating income. d. difference between sales and total variable cost. e. difference between variable cost and fixed cost.
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