Which of the Following Statements About Contribution Margin and Gross

question 108

Multiple Choice

Which of the following statements about contribution margin and gross margin in CVP analysis is true?

• A) Contribution margin equals total revenue minus cost of goods sold.
• B) Contribution margin equals total revenue minus non-variable costs.
• C) Gross margin equals total revenue minus cost of goods sold.
• D) Service companies can compute a gross margin but not a contribution margin.
• E) Gross margin equals total revenue minus non-variable costs.

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