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A) Direct materials costs. B) Direct materials costs minus operating costs. C) Direct materials, direct labor, and variable manufacturing costs. D) Operating expenses.
Answer option (A) >>>>>>>>>>>> Direct materials costs
Direct materials, direct labor, and variable manufacturing costs.
Contribution = Sales Minus Variable Cost
Throughput = Sales Revenue minus Total Variable Cost
The Throughput Contribution is Revenue minus variable cost, So C is the right answer.
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