What Is the Formula Managers Use to Calculate Their Contribution

question 31

Multiple Choice

What is the formula managers use to calculate their contribution margin for overall operation?

• A) Total sales + Variable costs = Contribution margin for overall operation
• B) Total sales x Variable costs = Contribution margin for overall operation
• C) Total sales ÷ Variable costs = Contribution margin for overall operation
• D) Total sales - Variable costs = Contribution margin for overall operation

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Definitions:

First Cause

A philosophical concept referring to the initial cause of a chain of events, often discussed in the context of the origin of the universe.

Controlled Experiment

An experiment in which all variables are kept constant except for the independent variable(s).

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment and is used as a benchmark to measure the effects of the treatment.

Experimental Group

A group in an experiment that receives the variable being tested.