Question

What is contribution margin?

A The amount available to cover fixed and variable costs and contribute to profits.


B The percent of selling price pertaining to the cost of goods sold.


C The amount available to cover fixed costs and contribute to profits.

D The amount of revenue remaining after deducting fixed costs.

Answer 1

Contribution margin is the amount available to cover costs and contribute to profits.

Step-by-step explanation:

Contribution margin is the amount available to cover fixed and variable costs and contribute to profits. It can be calculated by subtracting variable costs from revenue. The contribution margin is an important measure for businesses as it helps determine the profitability of individual products or services.