The Product Line of a Manufacturing Company Is Most Likely

question 72

Multiple Choice

The product line of a manufacturing company is most likely to be considered as:

• A)cost centers.
• B)profit centers.
• C)revenue centers.
• D)investment centers.

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Definitions:

Contribution Margin

The amount of revenue from sales that exceeds variable costs, contributing to covering fixed costs and generating profit.

Dollar Sales Volume

The total revenue generated from the sale of goods or services, expressed in monetary terms.

Target Net Profit

A specific financial goal for net income that a company aims to achieve within a certain period.

Contribution Margin Ratio

The ratio of contribution margin (sales minus variable costs) to sales revenue, showing the proportion of sales revenue that exceeds variable costs.