The Contribution Margin Ratio of 40% Means That 60 Cents

question 131

True/False

The contribution margin ratio of 40% means that 60 cents of each sales dollar is available to cover fixed costs and to produce a profit.

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Definitions:

Inductive

A reasoning process that involves making generalizations based on specific observations or evidence.

Quantitative

pertains to data or research that can be measured, represented, or expressed in numerical terms and is often used for statistical analysis.

Androcentricity

The practice of placing a masculine point of view at the center of one's world view, culture, and history, often at the expense of other perspectives.

Overgeneralization

The cognitive error of making broad and generalized interpretations or conclusions without sufficient evidence.