The difference between sales revenues and the total of variable costs is:

A) net profit.
B) the contribution margin.
C) gross operating profit.
D) the breakeven point.

Contribution Margin

The difference between the sales revenue of a product and its variable costs, used to cover fixed costs and generate profit.

Sales Revenues

The total amount of money generated from sales of goods or services before any expenses are subtracted.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and packaging.