Contribution margin less fixed costs yields

Name: Contribution margin less fixed costs yields
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Contribution margin less fixed costs yields operating income. This is because contribution margin represents the amount of revenue available to cover fixed costs and contribute to operating income after covering variable costs. Subtracting fixed costs from contribution margin gives the amount of revenue that is available to cover variable costs and generate operating income.

Contribution Margin Less Fixed Costs Yields