Contribution Margin

question 142

Multiple Choice

Contribution margin

• A) is always the same as gross profit margin.
• B) excludes variable selling costs from its calculation.
• C) is calculated by subtracting total manufacturing costs per unit from sales revenue per unit.
• D) equals sales revenue minus variable costs.

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Definitions:

Test Statistic

A standardized value calculated from sample data during a hypothesis test; used to decide whether to reject the null hypothesis.

Confidence Interval

A variety of values taken from statistics of a sample, presumed to hold the value of a not yet known population attribute.

Equality of Means

A statistical hypothesis test to determine whether there is a significant difference between the means of two or more groups.

Population Variances

Population variances measure the degree to which each number in a set differs from the mean of the population, showing the spread or dispersion within the set.