Which one of the following is correct concerning contribution margin?
A. It equals sales revenue minus total costs.
B. It is calculated by subtracting total manufacturing costs from sales revenue.
C. It is calculated by subtracting variable manufacturing costs from sales.
D. It is helpful in determining the effect of changes in sales on net income.
Answer: D
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.