Answer:
The correct answer is D. Contribution margin equals sales revenue minus variable costs.
Explanation:
In the economy, the contribution margin is the sales price minus the variable costs per product. It is the margin that remains per product after covering (paying) the constant costs for making a profit.
It is important for an entrepreneur that all costs of production are covered. In economically difficult times, a sales price below the variable costs can be briefly settled. The constant costs are difficult to influence in the short term.
