Total Contribution Margin Is Equal To

question 117

Multiple Choice

Total contribution margin is equal to:

• A)total sales less fixed costs.
• B)fixed costs plus net operating income.
• C)variable costs plus net operating income.
• D)total sales less net operating income.

---

Definitions:

Inventory

Goods held for sale or lease, or raw materials used or consumed in a business.

Graduated-Payment Mortgage

A mortgage that has a fixed interest rate during the life of the mortgage; however, the monthly payments made by the mortgagor increase over the term of the loan.

Variable Interest

An interest rate on a loan or security that can change over time based on the underlying benchmark interest rates.

Security Interest

A creditor’s right to use collateral to recover a debt.