Question 1
In the merchandising sector ________.
◦ only variable costs are subtracted to determine gross margin
◦ fixed overhead costs are subtracted to determine gross margin
◦ fixed overhead costs are subtracted to determine contribution margin
◦ all operating costs are subtracted to determine contribution margin
Question 2
Contribution margin and gross margin are terms that can be used interchangeably.
◦ true
◦ false