Contribution Margin Is the Amount Remaining After

question 157

Multiple Choice

Contribution margin is the amount remaining after:

• A)variable expenses have been deducted from sales revenue.
• B)fixed expenses have been deducted from sales revenue.
• C)fixed expenses have been deducted from variable expenses.
• D)cost of goods sold has been deducted from sales revenues.

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Definitions:

Behavioral Economics

A field of economic research that incorporates psychological insights into human behavior to explain economic decision-making.

Irrational

Describes a decision maker who chooses an option that leaves him or her worse off than choosing another available option.

Rational Decision

A decision-making process that is based on making choices that result in the optimal level of benefit or utility for the individual.

Economic Payoff

The return or financial gain from an investment or decision in the context of economics.