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:

Supply Chain Strategy

A plan for managing all the steps necessary to produce and deliver products or services to customers, from sourcing raw materials to the final delivery.

Distribution Channels

The chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer.

System

A set of interacting or interdependent components forming an integrated whole.

Collaboration-Based Strategies

Business tactics that involve working jointly with other individuals or organizations to achieve a common goal or to share knowledge, resources, and responsibilities.