Contribution Margin Denotes

question 29

Multiple Choice

Contribution margin denotes:

• A)The amount that remains after subtracting costs of goods sold from revenue.
• B)The amount that remains after subtracting fixed costs from revenue.
• C)The amount that remains after subtracting fixed costs from costs of goods sold.
• D)The amount that remains after subtracting variable costs from revenue.
• E)The amount that remains after subtracting variable costs from costs of goods sold.

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Definitions:

Semiannual

Pertaining to an event or action occurring twice a year, often used in the context of payments or interest calculations.

Interest Earn

The income received from lending money or depositing funds in interest-bearing accounts.

Compounded Monthly

This refers to the process of calculating interest on an initial principal, which also includes all of the accumulated interest from previous periods on a loan or deposit, on a monthly basis.

Present Value

The present value of a future amount of money or sequence of cash flows when discounted at a certain rate of return.