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Marta_Voda [28]
3 years ago
15

Contribution margin is:

Business
1 answer:
Serggg [28]3 years ago
8 0

Answer:

The correct answer is letter "D": sales less variable production, variable selling, and variable administrative expenses.

Explanation:

Contribution Margin is the difference between the revenue from sales and variable costs. This helps a company to analyze the profitability of individual products by calculating how earnings are influenced by sales. In other words, the contribution margin represents the portion of revenues that are used to cover fixed expenses such as administrative staff payments.

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Before making a decision about the correcting entry, it is necessary to check the entry and cross check the balances for sales and cash. One has to also check the receipts and every other necessary details in order to make sure that the transaction is genuine and not fraudulent.

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