How is contribution margin calculated?Question 6Answera.Sales revenue - Variable costsb.Fixed costs - Variable costsc.Variable costs - Fixed costsd.Sales revenue - Fixed costs
Question
How is contribution margin calculated?Question 6Answera.Sales revenue - Variable costsb.Fixed costs - Variable costsc.Variable costs - Fixed costsd.Sales revenue - Fixed costs
Solution
The contribution margin is calculated by subtracting variable costs from sales revenue. So, the correct answer is a. Sales revenue - Variable costs.
Similar Questions
Contribution margin is calculated as:Question 4Select one:a.sales minus cost of goods soldb.sales minus total variable costsc.sales minus total variable manufacturing costsd.sales minus total variable manufacturing costs and total fixed manufacturing costs
What is the formula for contribution margin?Select an answer:sales - SG&Asales - fixed costssales - variable costsales - CapEx
The contribution margin ratio:Multiple ChoiceIs the percent of each sales dollar that remains after deducting the unit variable cost.Is the percent of each sales dollar that remains after deducting the unit fixed cost.Is the percent of each sales dollar that remains to cover the variable and fixed costs.Cannot be used in conjunction with other analytical tools.Is the same as the contribution margin per unit.
A product has a sales price of $234 and a per-unit variable cost of $64.What is the contribution margin ratio? Please answer to 2 decimal places
The contribution margin ratio can be calculated as:Group of answer choicestotal contribution margin divided by total sales.contribution margin per unit multiplied by selling price per unit.all of the options are correct.total sales divided by total contribution margin.
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