Contribution Margin Is Defined As

question 98

Multiple Choice

Contribution Margin is defined as:

• A)Selling price less variable cost
• B)Selling price less operating expenses
• C)Sales less fixed cost
• D)Sales less variable cost and mixed cost

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Definitions:

Marginal Returns

Marginal Returns refer to the additional output or benefit received from increasing one unit of a particular input while keeping other inputs constant.

Marginal Cost

The incremental cost associated with the production of an extra unit of a product or service.

Marginal Cost Curve

A curve that displays the additional cost associated with producing one more unit of output, typically showing how marginal cost changes with changes in production volume.

Total Cost Curve

A graph that shows the total cost incurred by a firm in the production of goods or services at different levels of output.