Contribution margin represents the amount available to cover fixed expenses and then provide company profits.

Name: Contribution margin represents the amount available to cover fixed expenses and then provide company profits.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

Contribution margin is the amount left over from the sales revenue after deducting variable expenses. This amount is then used to cover fixed expenses and provide profits for the company. Therefore, the statement is true.

Contribution Margin Represents the Amount Available to Cover Fixed Expenses