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:

Independent Samples

Samples drawn from different populations without any pairing or matching between the samples.

Normal Distribution

A distribution of probability that reflects symmetry around the mean, illustrating that occurrences near the mean are more common than those further away from it.

Independent

The condition where two variables do not affect or influence each other.

Standard Error

The standard deviation of the sample mean's distribution; a measure of how much a sample mean varies from the true population mean.