Contribution Margin Can Be Calculated As

question 26

Multiple Choice

Contribution margin can be calculated as:

• A) profit + total variable costs.
• B) fixed costs - variable costs.
• C) total revenue - total fixed costs.
• D) total revenue - total variable costs.

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Definitions:

Linear Forecast

A mathematical technique used to predict future data points by analyzing the linear relationship between variables.

All-You-Can-Afford

A pricing strategy that bases the price on the customer's ability to pay, rather than fixed pricing.

Promotion-to-Sales Ratio

A metric that compares the cost of marketing and promotion activities to the revenue generated from sales.

Break-Even Points

The point at which total costs and total revenues are equal, meaning the business is neither making a profit nor a loss.