In Break-Even Analysis, the Contribution Margin Is Defined as

question 77

Multiple Choice

In break-even analysis, the contribution margin is defined as

• A)price minus variable cost.
• B)price minus fixed cost.
• C)variable cost minus fixed cost.
• D)fixed cost minus variable cost.

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Definitions:

Mass Production

The manufacturing of large quantities of standardized products often using assembly lines or automated technology, which can lead to economies of scale.

Product Orientation

A business approach that focuses on improving and selling a product without prioritizing customer needs or market demands.

Consumer Orientation

A business approach that prioritizes identifying and satisfying the preferences, needs, and expectations of consumers.