The total contribution margin is equivalent to the combined net profit and fixed costs. It can be computed also by adding sales and variable costs. a. Both statements are correct. b. Both statements are false. c. Only the first statement is correct. d. Only the second statement is correct.
The total contribution margin is equivalent to the combined net profit and fixed costs. It can be computed also by adding sales and variable costs. a. Both statements are correct. b. Both statements are false. c. Only the first statement is correct. d. Only the second statement is correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The total contribution margin is equivalent to the combined net profit and fixed costs. It can be computed also by adding sales and variable costs.
a. Both statements are correct.
b. Both statements are false.
c. Only the first statement is correct.
d. Only the second statement is correct.
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