Contribution Margin Is the Amount

question 164

Multiple Choice

Contribution margin is the amount

• A)That is available to cover fixed costs and provide a profit.
• B)Of total variable costs and total fixed costs.
• C)Sales less cost of goods sold.
• D)Of fixed costs.

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Definitions:

Horizontal

Referring to a direction or plane parallel to the ground or base line, at a right angle to the vertical.

Sketch Graph

The process of drawing a rough graph of a mathematical function or equation based on its key features, without the use of precise calculations.

Absolute Value

The distance of a number from zero on a number line, without considering direction.

Equation

An equation is a mathematical statement that asserts the equality of two expressions, often including variables and constants.