The Difference Between Sales and Variable Costs Is Called

question 35

Multiple Choice

The difference between sales and variable costs is called:

• A) net income.
• B) gross profit
• C) contribution margin.
• D) cost of goods sold.

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Definitions:

Marginal Tax

The tax rate that applies to the last dollar of the taxpayer's income.

Financial Manager

A professional responsible for managing the financial health of an organization, including planning, directing investment activities, and developing financial strategies.

Owners' Equity

The residual interest in the assets of an entity after deducting its liabilities, representing the net worth held by shareholders or owners.