Contribution Margin Minus Direct Fixed Selling Costs Equals

question 87

Multiple Choice

Contribution margin minus direct fixed selling costs equals:

• A) variable.
• B) fixed cost.
• C) direct selling cost.
• D) contribution profit.
• E) income after tax.

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Definitions:

Elasticities of Demand

Refers to various measures of how the quantity demanded of a good responds to changes in prices, income, or other goods' prices.

Segregate Market

The practice of dividing or separating markets into sections or categories based on consumer demographics, behaviors, or other characteristics.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, with elasticity referring to the degree of responsiveness.

Good Substitutes

Products or services that can be used in place of each other, having a high cross-elasticity of demand.