The Contribution Margin Ratio Increases When

question 127

Multiple Choice

The contribution margin ratio increases when

• A) fixed costs increase.
• B) fixed costs decrease.
• C) variable costs as a percentage of sales decrease.
• D) variable costs as a percentage of sales increase.

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Definitions:

Replacement

The process of substituting one element for another in a particular context, such as replacing a part in machinery or modifying a dataset.

Inferences

The process of drawing logical conclusions about a population based on sample data.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to infer the population parameter.

Childcare

The care and supervision of a child or multiple children, usually from age six weeks to age thirteen.