The dollar value that is available to be contributed to fixed costs after deducting variable expenses from sales is called the:

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The dollar value available to be contributed to fixed costs after deducting variable expenses from sales is called the contribution margin. Option A, profit-volume ratio, is the ratio of the contribution margin to sales, Option B, break-even point, refers to the level of sales at which total revenues equal total costs and profits are zero, and Option C, contribution margin ratio, is the ratio of the contribution margin to sales. Therefore, the best choice is D, contribution margin.

The Dollar Value That Is Available to Be Contributed to Fixed