The difference between total sales in dollars and total variable expenses is called:

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

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes to covering fixed costs and generating profit.

Variable Expenses

Costs that change in proportion to the activity of a business, such as sales commissions or raw materials.

Net Operating Income

is the total profit of a company after operating expenses are subtracted from revenue but before deducting interest and taxes.