Which of the following best describes contribution margin?
A) the profit margin on a unit of sale
B) the number of units that must be sold for total revenue to equal total costs
C) the cost of producing or purchasing one unit
D) the sum of fixed and variable costs for a particular quantity of production

Question

Quizplus · Accepted Answer

Contribution margin is the amount of revenue left over after deducting variable costs from sales revenue. In other words, it is the profit margin on a unit of sale.

Which of the Following Best Describes Contribution Margin