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Contribution is equivalent to:
Suggested Answer: D
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Selling price minus variable costs = contribution., or more accurately 'contribution towards fixed costs and making a profit'. I find this longer term for 'fixed costs' to be quite helpful in clarifying exactly what we are talking about here.
2 comments · newest first
MA
Margurite
2 days ago
I remember practicing a similar question, and I think contribution is selling price minus variable costs, so I would go with D as well.
NI
Nichelle
7 days ago
I think contribution is related to variable costs, so maybe it's D? But I'm not completely sure.