Question: Based on a review of the data visualizations, why is the contribution margin less than the gross margin? A . The traditional approach subtracts variable
Based on a review of the data visualizations, why is the contribution margin less than the gross margin?
A The traditional approach subtracts variable selling and administrative expenses as well as cost of goods sold from sales when
calculating gross margin, whereas the contribution approach excludes selling and administrative expenses when calculating
contribution margin.
B The contribution approach subtracts variable selling and administrative expenses as well as cost of goods sold from sales when
calculating the contribution margin, whereas the traditional approach excludes selling and administrative expenses when
calculating gross margin.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
