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:

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Agoraphobia

An anxiety disorder characterized by intense fear and avoidance of open or public places where escape might be difficult or help may not be available, often leading to limitations in daily activities.

Agoraphobia

A type of anxiety disorder characterized by an intense fear of being in situations where escape might be difficult or help wouldn't be available if things go wrong.

Acrophobia

Fear of heights.