The ____ Approach Shows Operating Managers and Salespeople What They've

question 89

Multiple Choice

The ____ approach shows operating managers and salespeople what they've actually contributed to covering general overhead and profit.

• A) net margin
• B) full-cost
• C) marketing overhead
• D) contribution margin
• E) net profit

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Definitions:

Sales Volumes

The quantity of products or services sold by a company within a specific period.

Contribution Margin Per Unit

The difference between the selling price per unit and variable cost per unit of a product.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, influenced by the proportion of fixed costs in total costs.

Net Operating Income

Net Operating Income is the total profit of a company after deducting operating expenses but before interest and taxes.