The Difference Between Total Sales in Dollars and Total Variable

question 133

Multiple Choice

The difference between total sales in dollars and total variable expenses is called:

• A)the net operating income.
• B)the contribution margin.
• C)the gross margin.
• D)the net profit.

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Definitions:

Fluctuation

Variations or changes in level, value, or volume, often encountered in markets, demand, or supply conditions.

Pricing Obstacles

Challenges and barriers encountered in determining the ideal pricing strategy for a product or service, such as competition, cost, customer perception, and market conditions.

Variability

The extent to which data points in a set differ from each other and from the mean, indicating the consistency or spread of the data set.

Efficient Frontier

In finance and operations, a concept that identifies the optimal portfolio of investments or resources that offers the highest expected return for a given level of risk.