Which of the Following Would Not Be an Acceptable Way

question 28

Multiple Choice

Which of the following would not be an acceptable way to express contribution margin?

• A) Sales minus variable costs
• B) Sales minus unit costs
• C) Unit selling price minus unit variable costs
• D) Unit contribution margin divided by unit selling price

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Definitions:

Costs

The expenses incurred in the production or acquisition of goods and services, including both direct and indirect expenditures.

Inelastic Demand

A situation in which the percentage change in quantity demanded of a good is less than the percentage change in price, indicating low sensitivity to price changes.

Tax Burden

The total amount of taxes that individuals, businesses, or other entities are obligated to pay, often expressed as a percentage of income or GDP.

Consumers

Individuals or organizations that use economic goods and services.