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:

Wedding Gown

A dress worn by a bride during her wedding ceremony, often symbolizing purity and celebration.

Proposed

Suggested or put forward for consideration, often as a plan or idea.

Mnemonic

A tool or strategy used to improve memory, often by associating complex information with simple, memorable cues.

Sound Intensity

A measure of the power per unit area of sound waves, typically described in terms of decibels.