The Contribution Margin Ratio Is Computed as Contribution Margin Divided

question 117

True/False

The contribution margin ratio is computed as contribution margin divided by sales.

---

Definitions:

Economic Principle

Basic theories or laws that underpin the functioning of economic systems and guide the understanding of economic interactions and outcomes.

Economy-Wide Interactions

The relationships and exchanges between different economic agents and sectors within an entire economy.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Congress

The national legislative body of the United States, consisting of the Senate and the House of Representatives.