Question

Time LimLU.JU.00 Question 1 (1 point) Contribution margin 1) is always the same as gross profit margin. O 2) excludes variable selling costs from its calculation. 3) is calculated by subtracting total manufacturing costs per unit from sales revenue per unit. 4) equals sales revenue minus variable costs. Question 2 (1 point) Contribution margin is 1) the amount of revenue remaining after deducting fixed costs. O2) available to cover fixed costs and contribute to income for the company. 3) sales less fixed costs. 4) unit selling price less unit fixed costs. Question 3 (1 point) The relevant range of activity refers to the

Answer 1

Solution: Question: Ander. opetion correct is 4 Contribution merrgin equcus salles devenue minus variable costs. The contribution margin meems Calculated in the selling nice per unit, the venubre Cost per unit. Each unit is cuso known as a clollar constribution Thics, is looks at how a particular procluct contributes to the overall benefit of the company, show/ provides profit estimates for a Specific procluct by the company and that prepresents the part of the sallo That cuways cooperates to pay bunc the Company's net costs. Any revenue remaining after cleclucting fixed cost is a company profit I guin. Question @ O ne og Answer: Correct Answer is 2 Contribution margin is the amount of sevenue remaining after declueting variceble costs I can also available to amount of

Cover fixed costs and contribute to income for the company. operation ① is false nie. the amount of revenue renceining after declucting vuncible costs. option ® is incorrect l.e. Contribution cost equals to net sales revenul less variceble costs. option ① is incorrect i.e. correct is unit selling price less than vencible costs