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What is contribution margin equal to on a contribution margin income​ statement? A. Sales revenues minus...

What is contribution margin equal to on a contribution margin income​ statement?

A.

Sales revenues minus fixed expenses

B.

Fixed expenses plus variable expenses

C.

Sales revenues minus variable expenses

D.

Fixed expenses minus variable expenses

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Answer #2

C. Sales revenues minus variable expenses

Contribution margin on a contribution margin income statement is equal to sales revenues minus variable expenses. It represents the amount of money available to cover fixed expenses and contribute to profits after deducting all variable costs associated with the production or sale of goods or services. It is an important metric for analyzing the profitability of individual products or services and making decisions about pricing and cost management.

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