Contribution margin minus direct fixed selling costs equals:
A) variable.
B) fixed cost.
C) direct selling cost.
D) contribution profit.
E) income after tax.

Question

Quizplus · Accepted Answer

The calculation of contribution margin minus direct fixed selling costs results in contribution profit. This represents the amount of revenue that is available to cover fixed costs and contribute to profit after deducting all variable and direct fixed costs. Therefore, the correct choice is D, contribution profit.

Contribution Margin Minus Direct Fixed Selling Costs Equals