Contribution is equivalent to:

Contribution is equivalent to:
A . Selling price minus total costs
B . Selling price
C . Selling price minus fixed costs
D . Selling price minus variable costs

View Answer

Answer: D

Explanation:

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.