Which of the Following Statements Regarding the Contribution Margin Ratio

question 37

Multiple Choice

Which of the following statements regarding the contribution margin ratio is not true?

• A)The contribution margin ratio is equal to the contribution margin per unit divided by the selling price per unit.
• B)The contribution margin ratio is the amount of each sales dollar that goes toward covering fixed costs and generating a profit.
• C)The contribution margin ratio is equal to variable cost per unit divided by fixed cost per unit.
• D)The contribution margin ratio is useful when companies that sell a variety of products calculate a break-even point in sales.

---

Definitions:

Secretions

Substances produced and released by cells or glands in the body, such as saliva, mucus, or hormones, serving various physiological functions.

Sweat Gland

One of the small tubular structures situated within and under the skin that produce sweat as a means to cool the body.

Dysfunction

Impaired or abnormal functioning, as of an organ, system, or process in the body, leading to a variety of health issues or diseases.

Musculoskeletal System

The organ system that includes bones, muscles, cartilage, tendons, ligaments, and other connective tissues, supporting and enabling body movements.