The ____ approach shows operating managers and salespeople what they've actually contributed to covering general overhead and profit.
A) net margin
B) full-cost
C) marketing overhead
D) contribution margin
E) net profit

Question

Quizplus · Accepted Answer

The contribution margin approach calculates the amount of revenue that is contributing towards covering both variable and fixed costs. This approach is useful for operating managers and salespeople as it shows them exactly how much they are contributing towards covering general overhead and achieving a profit. Therefore, option D is the correct answer.

The ____ Approach Shows Operating Managers and Salespeople What They've