Which of the Following Is the Correct Calculation for the Contribution

question 36

Multiple Choice

Which of the following is the correct calculation for the contribution margin ratio?

• A)Sales revenue divided by variable costs.
• B)Sales revenue divided by contribution margin.
• C)Contribution margin divided by sales revenue.
• D)Contribution margin divided by variable costs.

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Definitions:

Implied Powers

Powers not explicitly stated in the constitution or legal framework but are deemed necessary to implement the expressed powers.

Publicly Traded

describes a company whose shares are bought and sold on stock exchanges, available to general investors.

Securities Markets

Securities markets are financial markets where the trading of securities like stocks and bonds takes place, facilitating equity or debt capital formation and liquidity.

Majority Shareholder

An individual or entity owning more than 50% of a company's shares, giving them significant control over the company's decisions.