In deciding on advertising and other marketing efforts,managers need to know the profit contribution or profit margin,which is ________.
A)Net revenue - gross expenses
B)Sale price - cost of goods
C)Costs + revenue
D)Costs + net profit

Question

Quizplus · Accepted Answer

Profit contribution or profit margin is the difference between the sale price and the cost of goods. It is the amount of money that is left over after subtracting the cost of producing or acquiring the product or service, and it is the amount of money that is available to cover all other expenses and generate profit. Therefore, answer B (Sale price - cost of goods) is the best choice.

In Deciding on Advertising and Other Marketing Efforts,managers Need to Know