A Company with a Higher Contribution Margin Ratio Is

question 49

Multiple Choice

A company with a higher contribution margin ratio is

• A) more sensitive to changes in sales revenue.
• B) less sensitive to changes in sales revenue.
• C) either more or less sensitive to changes in sales revenue, depending on other factors.
• D) likely to have a lower breakeven point.

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Definitions:

Eight-Second Rule

A view that customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds.

Internet Auction

An online platform where goods or services are sold to the highest bidder through a competitive bidding process.

Marketer-To-Consumer

A business model focused on direct communication and transaction between marketers and consumers, bypassing intermediaries.

Internet-Enabled Technology

Devices and systems that can connect to the internet to send or receive data and provide enhanced functionality.