A Company with a Higher Contribution Margin Ratio Is

question 49

Multiple Choice

A company with a higher contribution margin ratio is

• A) more sensitive to changes in sales revenue.
• B) less sensitive to changes in sales revenue.
• C) either more or less sensitive to changes in sales revenue, depending on other factors.
• D) likely to have a lower breakeven point.

---

Definitions:

Punctuated Equilibrium

The idea that evolution proceeds with periods of little or no genetic change, followed by very active phases, so that major adaptations or clusters of adaptations appear suddenly in the fossil record. Compare with phyletic gradualism.

Gradualism

A concept in evolutionary biology that suggests changes occur slowly and incrementally over long periods of time.

Fossil Record

The accumulation of documented fossils, revealing information about past life, evolutionary processes, and the history of the earth.

Reproductively Isolated

A state in which two populations can no longer interbreed to produce fertile offspring, leading to the emergence of separate species.