Contribution margin is calculated by deducting ________ from sales revenue.
A) total product costs
B) total selling and administrative costs
C) total fixed costs
D) total variable costs

Question

Quizplus · Accepted Answer

Contribution margin is the amount of revenue that is available to cover fixed costs and contribute to profit after deducting variable costs. Therefore, the correct choice is D as it deducts only the variable costs from the sales revenue to calculate the contribution margin.

Contribution Margin Is Calculated by Deducting ________ from Sales Revenue