Explain the difference between total contribution margin and gross margin.
What will be an ideal response?
Total contribution margin recognizes the distinction between fixed and variable costs and is defined as total revenues minus total variable costs. Contribution margin does not make a distinction between production costs and selling or administrative costs. Gross margin is total revenues minus cost of goods sold. Gross margin recognizes the functional breakdown between production costs and selling/administrative costs but ignores the fixed/variable cost behaviors.
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Indicate whether the statement is true or false
In an auction without reserve, the seller is the offeree
Indicate whether the statement is true or false
Institutional theory suggests that firms choose hierarchy over markets because __________.
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