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    Question

    Contribution is calculated

    as:
    A Sales тАУ Profit Correct Answer Incorrect Answer
    B Sales тАУ Fixed Cost Correct Answer Incorrect Answer
    C Sales тАУ Variable Cost Correct Answer Incorrect Answer
    D Sales тАУ Total Cost Correct Answer Incorrect Answer

    Solution

    Contribution = Sales тАУ Variable Cost. It is the amount available to cover fixed costs and contribute to profit.

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