A profit is made when
A) Total contribution is greater than fixed costs
B) Total contribution is less than fixed costs
C) Total contribution is equal to variable costs
D) Total contribution is greater than variable costs.

Question

Quizplus · Accepted Answer

Total contribution surpasses fixed costs to generate a profit, as it indicates that the revenue not only covers the variable costs but also the fixed costs, leaving a surplus.

A Profit Is Made When