Contribution margin equals revenue less:
A) cost of sales.
B) fixed costs.
C) mixed costs.
D) variable costs.

Question

Quizplus · Accepted Answer

Contribution margin is calculated as revenue minus variable costs. Fixed costs and mixed costs are not included in this calculation as they do not directly vary with changes in sales or production levels. Cost of sales can include both fixed and variable costs, so it is not the correct answer.

Contribution Margin Equals Revenue Less