Contribution margin is calculated by
A) deducting variable costs from revenue.
B) deducting variable costs and controllable fixed costs from revenue.
C) deducting variable costs and common costs from revenue.
D) deducting fixed costs from revenue.

Question

Quizplus · Accepted Answer

Contribution margin is the amount of revenue that remains after deducting variable costs, which are costs that vary with the level of output or sales. Therefore, the correct option is A.

Contribution Margin Is Calculated by