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    5. Contribution is calculated as:

    Question

    Contribution is calculated

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

    Solution

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

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