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Which one of the following is correct concerning contribution margin? It is calculated by subtracting total manufacturing costs from sales revenue. It is helpful in determining the effect of changes in sales on net income. It is calculated by subtracting variable manufacturing costs from sales. It equals sales revenue minus total costs.

Respuesta :

Answer:

It is helpful in determining the effect of changes in sales on net income.

Explanation:

Contribution margin is a product's price minus all associated variable costs, resulting in the incremental profit earned for each unit sold. The total contribution margin generated by an entity represents the total earnings available to pay for fixed expenses and to generate a profit.

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