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:

Self-discipline

The ability to control one's feelings, impulses, and actions in order to achieve long-term goals.

Magic Pills

A term often used metaphorically to describe a solution that is overly simplistic or unrealistic for solving complex problems.

Long-term Potentiation

A long-lasting enhancement in signal transmission between two neurons that results from stimulating them simultaneously.

Frontal Lobe

The region of the brain situated at the forefront of each cerebral hemisphere, tasked with controlling voluntary movements, expressive language, and overseeing advanced executive functions.