Contribution margin is

A) the amount of revenue remaining after deducting fixed costs.
B) available to cover fixed costs and contribute to income for the company.
C) sales less fixed costs.
D) unit selling price less unit fixed costs.

Contribution Margin

The amount by which product sales revenue exceeds variable costs, showing how much contributes to covering fixed costs and generating profit.

Fixed Costs

Business expenses that do not change regardless of the level of production or sales activities, such as rent, salaries, and insurance.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.