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Example of Variable Cost

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What is the excess of a product's selling price over its variable costs referred to as?

a) gross profit
b) contribution margin
c) gross margin
d) manufacturing margin

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This solution discusses the excess of a product's selling price over its variable costs.

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Variable costs

What is the excess of a products selling price over its variable costs referred to as?

a) Gross profit - Total revenue of a business minus the cost of goods it sold. Gross profit does not include income from incidental sources ...

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