Examveda
Examveda

Formula to calculate contribution margin is

A. revenue - all variable cost

B. revenue + all variable cost

C. cost + revenue

D. revenue - breakeven units

Answer: Option A

Solution(By Examveda Team)

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.

This Question Belongs to Management >> Management Accounting

Join The Discussion

Related Questions on Management Accounting