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The formula of EBIT = ________

A. Sales - Variable cost

B. Contribution - Fixed cost

C. Sales - Fixed cost

D. All the above

Answer: Option B

Solution (By Examveda Team)

The formula of EBIT = Contribution - Fixed cost.

This Question Belongs to Commerce >> Financial Management

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Comments (2)

  1. Suindu De
    Suindu De:
    9 months ago

    Answer should be total sales.Contrbution is the EBIT itself so there is no meaning to subtract the Fixed cost.

  2. Manoj Kumar
    Manoj Kumar:
    4 years ago

    its helps alot

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