The Contribution Margin Is

question 126

Multiple Choice

The contribution margin is:

• A) Used to determine the amount of fixed costs needed
• B) Total fixed costs plus total variable costs
• C) The dollars that contribute to fixed costs and then to profit once fixed costs are covered
• D) Not necessary when we solve for the volume of units sold at target profit

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Definitions:

Steamer Planter

A Confederate steamship hijacked in 1862 by Robert Smalls, an enslaved African American who then sailed it to freedom and surrendered it to the Union.

Robert Smalls

An African American who escaped slavery to become a Union naval hero and later a US Congressman.

Union Navy

The naval force of the United States during the American Civil War, playing a critical role in blockading the Confederate states.

Impressment

The act of forcibly taking men into military service without their consent, especially used by British Royal Navy against American seamen in the early 19th century.