The Difference Between Total Revenues and Total Variable Costs Is

question 19

Multiple Choice

The difference between total revenues and total variable costs is:

• A)margin of safety.
• B)sensitivity analysis.
• C)the breakeven point.
• D)contribution margin.
• E)operating leverage.

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Definitions:

Wholesaler

A person or entity that buys goods in large quantities from manufacturers or importers and sells them to retailers or other businesses.

Mark-Up

The percentage or fixed amount added to the cost of goods to determine the selling price.

Operating Profit

Revenue obtained through a company's principal business activities, before subtracting interest and taxes.

Invoice

A paper provided by the seller to the purchaser, listing the items, amounts, and confirmed pricing for goods or services rendered by the seller.