Sales × Contribution Margin is a short-cut of what formula?
A)Sales − (Variable cost ratio × Sales)
B)Sales − (Fixed Costs + Variable Costs)
C)Sales / Fixed Costs
D)Fixed Costs / Unit Contribution Margin

Question

Quizplus · Accepted Answer

Sales × Contribution Margin is a short-cut formula for calculating the total contribution margin. The actual formula for total contribution margin is: Sales - (Variable cost ratio × Sales). Therefore, the best choice is A.

Sales × Contribution Margin Is a Short-Cut of What Formula