Select from the Following the Incorrect Statement Regarding Contribution Margin

question 58

Multiple Choice

Select from the following the incorrect statement regarding contribution margin.

• A) Sales − Fixed costs = Contribution margin
• B) Net income + Total fixed costs = Contribution margin
• C) At the breakeven point (where the company has neither profit nor loss), Total fixed costs = Total contribution margin
• D) Total sales revenue times the contribution margin percentage = Total contribution margin

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Definitions:

Residential Community

A geographic area where people live close to one another and share common spaces or amenities, often governed by specific rules or associations.

Nursing Home

A residential facility offering a high level of care for the elderly or those with severe health issues, including medical and personal care.

Multigenerational Home

A household setup where more than two generations of the same family live under one roof, such as grandparents, parents, and children.

Nursing Home

A residential facility for elderly or disabled people who require constant nursing care and have significant deficiencies with activities of daily living.