What is contribution margin equal to on a contribution margin income statement?
A)Fixed expenses plus variable expenses
B)Fixed expenses minus variable expenses
C)Sales revenues minus variable expenses
D)Sales revenues minus fixed expenses

Question

Quizplus · Accepted Answer

Contribution margin is equal to sales revenues minus variable expenses on a contribution margin income statement. This represents the amount of revenue that is available to cover fixed expenses and contribute to profit.

What Is Contribution Margin Equal to on a Contribution Margin