The Formula for the Contribution Margin Is

question 3

Multiple Choice

The formula for the contribution margin is

• A) Price - average variable cost, P-AVC
• B) Price - average fixed cost, P-AFC
• C) Price - average total cost, P-ATC
• D) Total revenue - total cost, TR-TC

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Definitions:

Consumerism

An economic and social system that promotes the continuous increase in the purchase and consumption of goods and services.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, driven by international trade and investment and aided by information technology.

Culture Diversification

The process by which a culture becomes more varied and complex through the incorporation of different ethnic, social, or cultural influences.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.