The Per Dollar Contribution Toward Fixed Operating Costs and Profits

question 106

Multiple Choice

The per dollar contribution toward fixed operating costs and profits provided by each dollar ofsales is the

• A) expense ratio.
• B) contribution margin.
• C) fixed coverage ratio.
• D) profit margin.

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Definitions:

U.S. Steel Case

The antitrust action brought by the federal government against the U.S. Steel Corporation in which the courts ruled (in 1920) that only unreasonable restraints of trade were illegal and that size and the possession of monopoly power were not by themselves violations of the antitrust laws.

DuPont Cellophane

A branded version of cellophane, originally developed and marketed by the DuPont company, used for packaging and other applications.

Sherman Act

A landmark U.S. legislation passed in 1890 aimed at promoting competition among businesses by prohibiting monopolies and restrictive trade practices.

Standard Oil Case

A landmark U.S. legal case from 1911 that resulted in the breakup of the Standard Oil Company due to its monopolistic practices.