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:

Payroll Taxes

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay their staff, used to fund social security and medicare in many countries.

Health Insurance

A type of insurance coverage that typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.

Moral Hazard Problem

A situation in economics where one party is more likely to take risks because the negative consequences of the risk will be felt by another party, often seen in insurance and finance sectors.

Health Care Market

The aggregate of all businesses and organizations involved in the provision and funding of health care services, including hospitals, insurance companies, and pharmaceutical companies.