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Katarina [22]
4 years ago
10

Contribution margin is:

Business
1 answer:
ddd [48]4 years ago
8 0

Answer:

Sales less variable production, variable selling, and variable administrative expenses.

Explanation:

On a contribution margin income statement the variable administrative and variable selling are considered as variable cost and used to determinate the contribution margin.

Contribution margin =

sales revenue - total variable cost

the fixed cost are listed below the contriution,

once subtracted from the contribution, the rest is the net income.

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