Contribution Margin Is the Amount That Contributes to Covering the Fixed

question 27

True/False

Contribution margin is the amount that contributes to covering the fixed costs and then to providing operating income.

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Definitions:

Meaningful Units

Fundamental components of language or information that carry significance and help in understanding the whole.

George Miller

A psychologist best known for his theory that the average number of objects an individual can hold in short-term memory is 7 ± 2.

Magic Number

A concept in cognitive science referring to the short-term memory capacity of about seven items (plus or minus two).

Auditory Traces

Memory traces of auditory information that are believed to persist in the brain for a brief period after the auditory stimulus has ended.