Contribution Margin Is

question 18

Multiple Choice

Contribution margin is:

• A) sales less cost of sales.
• B) sales less variable costs.
• C) equivalent to gross profit.
• D) sales less fixed costs.

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Definitions:

Directors

Members of a company's board who are elected by shareholders to make important decisions regarding the company's management and policies.

Officers

Executive members of an organization responsible for managing its day-to-day operations and making significant business decisions.

Due Care

The level of judgment, caution, and attentiveness expected of a reasonable person.

Negligence

Failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability for the resulting harm.