Asked by Changhao Zhang on May 13, 2024
Verified
Contribution margin is the excess of sales over total variable costs.
Total Variable Costs
The sum of all costs that vary directly with the level of production or sales volume, such as materials and labor costs.
- Acquire an understanding of the contribution margin concept and its use in examining the performance of businesses.
Verified Answer
BP
Boramey PhornMay 18, 2024
Final Answer :
True
Explanation :
Contribution margin is defined as the amount of money left over after deducting all variable costs from sales revenue. Therefore, it is the excess of sales over total variable costs.
Learning Objectives
- Acquire an understanding of the contribution margin concept and its use in examining the performance of businesses.
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