Contribution margin provides an indication of how much revenue from each unit sold can be applied towards fixed costs.

Name: Contribution margin provides an indication of how much revenue from each unit sold can be applied towards fixed costs.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

Contribution margin is calculated by subtracting variable costs from sales revenue for each unit sold, indicating how much of the revenue from each unit can be used to cover fixed costs.

Contribution Margin Provides an Indication of How Much Revenue from Each