Which of the Following Terms Refers to the Monetary Amount

question 25

Multiple Choice

Which of the following terms refers to the monetary amount added to a product's cost to the seller in order to sell it at a target profit?

• A) Profit margin
• B) Breakeven cost
• C) Revenue
• D) Revenue margin
• E) Markup

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Definitions:

Service Firms

Companies that provide intangible products or services to consumers or other businesses rather than physical goods.

Contribution Margin Ratio

The percentage of each sales dollar that is available to cover the fixed costs and provide an operating income. Also called profit-volume ratio.

Contribution Margin

The income left over after subtracting variable expenses, which is utilized to pay for fixed costs and create earnings.

Sales

Sales refer to the transactions where goods or services are exchanged for money, contributing to a company's revenue.