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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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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