WGU D196 Contribution Margin Analysis Certification Exam
Questions and Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant Download Pdf
1. Which formula correctly calculates contribution margin?
A. Sales revenue − fixed costs
B. Sales revenue − total costs
C. Sales revenue − variable costs
D. Fixed costs − variable costs
Answer: C. Sales revenue − variable costs
Rationale: Contribution margin represents the amount of revenue
remaining after covering variable costs. This remaining amount
contributes toward covering fixed costs and generating operating
income. The formula is Contribution Margin = Sales Revenue − Variable
Costs.
2. A company sells a product for $50 per unit. The variable cost per unit
is $30. What is the contribution margin per unit?
A. $20
, B. $30
C. $50
D. $80
Answer: A. $20
Rationale: Contribution margin per unit is calculated by subtracting
variable cost per unit from selling price per unit: $50 − $30 = $20. Each
unit sold contributes $20 toward fixed costs and profit.
3. Which cost behavior classification is most important when calculating
contribution margin?
A. Fixed and variable costs
B. Direct and indirect costs
C. Product and period costs
D. Manufacturing and administrative costs
Answer: A. Fixed and variable costs
Rationale: Contribution margin analysis focuses on separating variable
costs from sales revenue. Fixed costs are not included in the
contribution margin calculation because they do not change with
production volume.
Questions and Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant Download Pdf
1. Which formula correctly calculates contribution margin?
A. Sales revenue − fixed costs
B. Sales revenue − total costs
C. Sales revenue − variable costs
D. Fixed costs − variable costs
Answer: C. Sales revenue − variable costs
Rationale: Contribution margin represents the amount of revenue
remaining after covering variable costs. This remaining amount
contributes toward covering fixed costs and generating operating
income. The formula is Contribution Margin = Sales Revenue − Variable
Costs.
2. A company sells a product for $50 per unit. The variable cost per unit
is $30. What is the contribution margin per unit?
A. $20
, B. $30
C. $50
D. $80
Answer: A. $20
Rationale: Contribution margin per unit is calculated by subtracting
variable cost per unit from selling price per unit: $50 − $30 = $20. Each
unit sold contributes $20 toward fixed costs and profit.
3. Which cost behavior classification is most important when calculating
contribution margin?
A. Fixed and variable costs
B. Direct and indirect costs
C. Product and period costs
D. Manufacturing and administrative costs
Answer: A. Fixed and variable costs
Rationale: Contribution margin analysis focuses on separating variable
costs from sales revenue. Fixed costs are not included in the
contribution margin calculation because they do not change with
production volume.
