Which of the Following Is the Correct Formula for the Contribution

question 23

Multiple Choice

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

• A)sales - total variable cost
• B)(unit selling price - unit variable cost)÷ unit selling price
• C)unit selling price - unit variable cost
• D)(unit selling price - unit variable cost)÷ unit variable cost

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Definitions:

Range

The difference between the largest and smallest values in a set of data.

Variance

A measure of variability that describes the spread of a data set or distribution.

Standard Deviation

A measure of the dispersion or variability within a dataset, indicating how spread out the values are from the mean.

Coefficient Of Variation

A consistent way to quantify the variability of a probability or frequency distribution, represented as a proportion of the mean.