Contribution Margin Is

question 35

Multiple Choice

Contribution margin is

• A) selling price minus variable costs
• B) selling price minus fixed costs
• C) selling price minus variable and fixed costs
• D) profit per unit divided by variable costs

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Definitions:

Excessive Losses

Financial shortfalls that substantially exceed normal or expected amounts, potentially jeopardizing a company's stability.

Deficit

A financial situation where liabilities exceed assets, expenses exceed income, or losses surpass profits.

Liquidation Expenses

Costs associated with distributing or selling off a company's assets during the closure or bankruptcy process.

Noncash Assets

Assets owned by a firm that are not in the form of cash or cash equivalents, such as buildings, equipment, and patents.