A Credit

question 86

Multiple Choice

A credit

• A) increases assets.
• B) is on the right side.
• C) decreases liabilities.
• D) decreases owner's equity.

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Definitions:

Contribution Margin Ratio

A calculation that shows a company's ability to cover its variable costs with its sales revenue, often expressed as a percentage.

Unit Variable Cost

The cost associated with producing additional units which may include materials, labor, and other variable costs.

Contribution Margin Per Unit

The selling price per unit minus the variable cost per unit, representing the portion of sales revenue that is not consumed by variable costs and contributes to covering fixed costs.