The Contribution Margin Ratio Is

question 78

Multiple Choice

The contribution margin ratio is:

• A)the difference between sales revenue and variable costs.
• B)the difference between variable costs and fixed costs.
• C)variable costs divided by fixed costs.
• D)contribution margin per unit divided by sales price per unit.

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Definitions:

Technological Advance

The development and application of new technologies and processes that improve efficiency, productivity, or performance.

Substitute

A second definition, phrased differently: An alternative product or service that consumers may opt for when the original is unavailable, too expensive, or of lower quality.

Important Resource

A critical asset or input used in the production of goods or services that significantly impacts an organization's or ecosystem's functionality.