Q301
Formula to calculate contribution margin is
A.
revenue - all variable cost
AnswerB.
revenue + all variable cost
C.
cost + revenue
D.
revenue - breakeven units
Answer: Option A
Solution
Answer: Option A
Solution:
Formula to calculate contribution margin is revenue - all variable cost. Also known as dollar contribution per unit, the measure indicates how a particular product contributes to the overall profit of the company.