________ are subtracted from sales to calculate contribution margin.
A)Variable manufacturing costs
B)Variable selling and administrative costs
C)Fixed manufacturing costs
D)Both A and B are correct.

Question

Quizplus · Accepted Answer

To calculate the contribution margin, we need to subtract all variable costs that are directly related to generating revenue, such as variable manufacturing costs and variable selling and administrative costs. Fixed costs are not included in the calculation of contribution margin. Therefore, both option A and option B are correct.

________ Are Subtracted from Sales to Calculate Contribution Margin