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      Question

      Which among the following profitability level is the

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