The Contribution Margin Ratio Is

question 78

Multiple Choice

The contribution margin ratio is:

• A) Total variable cost divided by total revenue
• B) Total contribution margin divided by total revenue
• C) The same as the margin of safety
• D) Total fixed costs divided by price minus variable cost

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Definitions:

Payroll Tax

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay their staff, used to fund social security and other government programs.

Corporate Income Tax

A tax imposed on the net income (profit) of corporations, calculated at a corporate tax rate.

Capital Intensive Techniques

Production methods that require a higher investment in physical capital rather than labor.