Contribution margin equals:

A Revenue − fixed costs

B Revenue − variable costs

C Revenue − total costs

D Gross profit − operating expenses

✓ Correct Answer: Option B

Contribution margin = Revenue − Variable Costs. It contributes toward covering fixed costs and generating profit.

💡 Why is B) the correct answer?

The correct answer to the question "Contribution margin equals:" is Option B: Revenue − variable costs.

The other options — A) Revenue − fixed costs, C) Revenue − total costs, D) Gross profit − operating expenses — are incorrect for this CPA Exam Prep question. As explained above: Contribution margin = Revenue − Variable Costs. It contributes toward covering fixed costs and generating profit.

📚 About This CPA Exam Prep Practice Question

This 1-level CPA Exam Prep question from the Business Environment (BEC) topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CPA Exam Prep practice test or use flashcards for spaced repetition review.

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Contribution margin equals:

✓ Correct Answer: Option B

📚 About This CPA Exam Prep Practice Question

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