Question

contribution margin equals _________blank. multiple choice 1 sales minus variable cost minus fixed cost fixed cost minus variable cost sales minus fixed cost sales minus variable cost

Answer 1

The contribution margin equals sales minus variable cost. It is a measure of profitability that shows how much each unit of sale contributes to covering the fixed costs and generating profit.

Step-by-step explanation:

The contribution margin equals sales minus variable cost. It is a measure of profitability that shows how much each unit of sale contributes to covering the fixed costs and generating profit.