| What to create | Quiz |
| Which subject | Business |
| What age group | College |
| What topic | contribution |
| Question types | Close-ended |
| Number of questions | 10 |
| Number of answers | 4 |
| Correct answers | Exactly 1 |
| Show correct answers | |
| Use images (descriptions) | |
| Any other preferences |
Please read each question carefully and select the correct answer from the four possible options provided.
What is contribution in business? A. The amount of money a business earns B. The amount of money a business spends C. The difference between sales revenue and variable cost D. The total amount of expenses a business incurs
Why is contribution important for a business? A. It helps the business know how much money they have made B. It helps the business know how much money they have spent C. It helps the business determine the profitability of a product or service D. It helps the business determine how much to pay their employees
How is contribution calculated? A. Sales revenue minus fixed costs B. Total revenue minus total expenses C. Sales revenue minus variable costs D. Total revenue minus variable costs
What is a contribution margin? A. The percentage of sales revenue that covers fixed costs B. The amount of money leftover after all expenses are paid C. The amount of money a product or service contributes towards paying off a company's fixed costs D. The amount of money a product or service contributes towards paying off a company's variable costs
How can a business increase their contribution margin? A. By increasing sales revenue B. By decreasing variable costs C. By decreasing fixed costs D. All of the above
What is a break-even point? A. The point where revenue equals expenses B. The point where revenue exceeds expenses C. The point where expenses exceed revenue D. The point where total revenue equals fixed costs
How can a business decrease their break-even point? A. By increasing variable costs B. By decreasing fixed costs C. By decreasing sales revenue D. By increasing the selling price of their products or services
What are some strategies a business can use to increase their contribution margin? A. Bundle products or services together B. Increase selling price C. Decrease variable costs D. All of the above
What is the contribution margin ratio? A. The ratio of sales revenue to expenses B. The ratio of sales revenue to fixed costs C. The ratio of contribution margin to sales revenue D. The ratio of gross profit to net profit
What does a high contribution margin ratio indicate? A. The business is not profitable B. The business has a low break-even point C. The business has a high variable cost D. The business has a strong product or service offering
Answers: