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26 July, 19:51

Contribution margin is a. the excess of sales revenue over variable cost b. another term for volume in cost-volume-profit analysis c. the same as sales revenue d. profit

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  1. 26 July, 21:58
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    a. the excess of sales revenue over variable cost

    Explanation:

    The contribution margin shows a difference between the sales revenue and the variable cost

    And, the same formula is applied for calculating the contribution margin per unit

    i. e

    Contribution margin per unit = Selling price per unit - Variable expense per unit

    In mathematically,

    Contribution margin = Sales revenue - variable cost

    Therefore, the correct answer is a.
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