Total Contribution Margin Less Total Fixed Expenses Equals

question 193

Multiple Choice

Total contribution margin less total fixed expenses equals

• A)contribution margin ratio.
• B)operating income.
• C)gross profit.
• D)sales revenue.

---

Definitions:

Straight-Line Depreciation

A technique of spreading the expense of an asset evenly across its lifespan to calculate depreciation.

Income Tax Expense

The amount of money a company is required to pay to the government based on its net income, according to the applicable income tax rates.

Capital Budgeting

The process of planning and managing a company's long-term investments in projects and assets.

Incremental Sales

Additional sales generated by a particular marketing activity or sales initiative beyond the expected or normal level.