Contribution margin is the amount of revenue remaining after deducting
A) cost of goods sold.
B) fixed costs.
C) variable costs.
D) contra-revenue.

Question

Quizplus · Accepted Answer

Contribution margin is calculated by subtracting the total variable costs from the total revenue. Therefore, the correct answer is option C, which lists variable costs. Options A and B are incorrect because they subtract fixed costs, and option D is incorrect because it refers to contra-revenue, which is a deduction from revenue, rather than a deduction from costs.

Contribution Margin Is the Amount of Revenue Remaining After Deducting