The Contribution Margin Is So Called Because It Contributes To

question 5

Multiple Choice

The contribution margin is so called because it contributes to:

• A)variable costs.
• B)fixed and variable costs.
• C)fixed costs and profit.
• D)fixed costs.

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Definitions:

Conform

To act in accordance or harmony with established standards, rules, or laws.

Contract

A contract is a legally enforceable agreement between two or more parties with mutual obligations.

Commercial Impracticability

A doctrine under which a seller may be excused from performing a contract when (1) a contingency occurs, (2) the contingency’s occurrence makes performance impracticable, and (3) the nonoccurrence of the contingency was a basic assumption on which the contract was made.

Foresee

The ability to anticipate or predict future events or outcomes based on current knowledge or analysis.