Asked by
Luis Manuel Lopez Chirino
on Nov 12, 2024Verified
The contribution margin is?
A) $240,000.
B) $72,000.
C) $632,000.
D) $560,000.
Contribution Margin
The amount of revenue from sales that exceeds variable costs, contributing to covering fixed costs and generating profit.
Variable Expenses
Costs that change in relation to the business’s activity level or volume, similar to variable costs.
Fixed Expenses
Costs that do not vary with the level of production or sales within a certain range.
- Comprehend the calculation and significance of contribution margin and contribution margin ratio.
Verified Answer
CL
Learning Objectives
- Comprehend the calculation and significance of contribution margin and contribution margin ratio.