Contribution Margin Ratio Can Be Calculated in All of the Following

question 77

Multiple Choice

Contribution margin ratio can be calculated in all of the following ways except

• A)Fixed costs/Contribution margin per unit
• B)1 - Variable cost ratio
• C)Contribution margin per unit/price
• D)Total contribution margin/Total sales
• E)all of these are correct

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Definitions:

Cash Flows

The movement of money into and out of a business or project, considered vital for assessing the financial health of an entity.

Reinvested

The act of using profits or earnings to purchase additional assets or to fund operations, aiming for future growth or income.

Payback Period

The time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment.

Salvage Value

The estimated resale value of an asset at the end of its useful life.