__________________ is gross margin less any expense that can be directly assigned to the merchandise.
A) Contribution margin
B) Net sales
C) Gross profit
D) Break-even point
E) Revenue

Question

Quizplus · Accepted Answer

Contribution margin is a measure of profitability that is calculated by subtracting all variable costs from sales revenue. It represents the amount of revenue or sales that is available to cover fixed costs and contribute to profit after all variable costs have been accounted for. Therefore, it is calculated as gross margin less any expenses that can be directly assigned to the merchandise, such as production costs or distribution expenses.

__________________ Is Gross Margin Less Any Expense That Can Be