The total contribution margin is calculated as the difference between

Question

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Contribution margin represents the amount of revenue that is left over after deducting variable costs. Therefore, it is calculated as the difference between total revenue and total variable costs. Option A is incorrect because it only considers the contribution margin per unit. Option B is incorrect because fixed costs are not included in the calculation of contribution margin. Option D is incorrect because it includes all costs, including fixed costs, which are not relevant for calculating contribution margin.

The Total Contribution Margin Is Calculated as the Difference Between