Total Contribution Margin Is Calculated by Subtracting

question 30

Multiple Choice

Total contribution margin is calculated by subtracting

• A)cost of goods sold from total revenues.
• B)fixed costs from total revenues.
• C)total manufacturing costs from total revenues.
• D)total variable costs from total revenues.

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Definitions:

Equipment Sale

The process of selling off business-owned equipment, either to upgrade to newer assets or to liquidate assets for cash.

Cash Dividend

A payment made by a company out of its earnings to its shareholders in cash.

Financing Activities

Transactions that involve raising funds to finance the company's operations and repaying debt; part of a firm's financial operations detailed on the statement of cash flows.

Principal Repayment

The portion of a loan payment that goes toward reducing the original amount borrowed, not including interest.