Question

    Which among the following profitability level is the

    profit from which the fixed costs are to recovered first to arrive at the profit?
    A Net Profit Correct Answer Incorrect Answer
    B Operating Profit Correct Answer Incorrect Answer
    C EBITDA Correct Answer Incorrect Answer
    D Contribution Correct Answer Incorrect Answer

    Solution

    Contribution is the profit level under Marginal Costing which contributes first towards recovery of fixed costs and later, leads to the generation of profits.

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