The Contribution-Margin Approach Focuses Attention on _____ Rather Than on ______

question 100

Multiple Choice

The contribution-margin approach focuses attention on _____ rather than on ______.

• A) fixed costs; variable costs
• B) gross margins; net margins
• C) total costs; fixed costs
• D) overheads; fixed costs
• E) variable costs; total costs

---

Definitions:

Marginal Revenue

The additional income that is gained from selling one more unit of a product or service.

Consumer Surplus

The discrepancy between the total sum consumers are prepared and capable of paying for a good or service, and the total sum they end up paying.

Profit Maximize

The method through which a company identifies the optimal pricing and production volume to maximize its profits.

Output

Output is the total amount of goods or services produced by a company, sector, or economy within a certain period, indicating the level of productivity and capacity utilization.