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.
 Based on a review of the data visualizations, why is the

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!