Contribution Margin Is

question 44

Multiple Choice

Contribution margin is

• A) the amount of revenue remaining after deducting fixed costs.
• B) available to cover fixed costs and contribute to income for the company.
• C) sales less fixed costs.
• D) unit selling price less unit fixed costs.

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Definitions:

Residual Value

The amount for which the lessee can purchase a leased vehicle at the end of the term of the lease.

Compounded Quarterly

Calculating interest on both the initial principal and previously accumulated interest four times a year.

Lease Interest

The interest cost associated with leasing an asset, often a charge in addition to the lease payments.

General Annuity

An annuity in which the payment interval does not equal the compounding interval.