Total Contribution Margin Is Calculated by Subtracting

question 30

Multiple Choice

Total contribution margin is calculated by subtracting

• A)cost of goods sold from total revenues.
• B)fixed costs from total revenues.
• C)total manufacturing costs from total revenues.
• D)total variable costs from total revenues.

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Definitions:

Capital Loss

The loss incurred when a capital asset is sold for less than its purchase price.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Capital Asset

An asset of any kind owned for investment or personal purposes, not usually sold in the course of business.

Household Furnishings

Items and accessories used for decorating and living in a home, such as furniture, rugs, and appliances.