Answer :
The contribution margin is Sales Revenue minus fixed expenses. Hence correct option is 'a'.
The contribution margin is what?
The contribution margin displays the total amount of revenue that remains from variable costs to pay for fixed costs and make a profit for the business. This might be viewed as the percentage of sales that goes toward covering fixed costs.
Are contribution margin and net profit the same thing?
Revenue less cost equals net profit. Dollar per-unit contribution is the difference between the sale price per unit and the per-unit variable cost. Contribution is the part of sale money that goes toward covering fixed costs rather than being used to pay for variable expenditures.
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