The Contribution Margin Ratio Is Computed as

question 4

Multiple Choice

The contribution margin ratio is computed as

• A)sales divided by contribution margin
• B)contribution margin divided by sales
• C)contribution margin divided by cost of sales
• D)contribution margin divided by variable cost of sales

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Definitions:

Disrupted Production

Interruptions or disturbances in the normal manufacturing or production process.

Transportation Costs

Expenses associated with the movement of materials, goods, or personnel from one location to another, which can include freight, shipping, and logistics costs.

Receiving Costs

Expenses associated with accepting goods from suppliers, including inspection, storage, and document processing costs.

Shortage Costs

Costs incurred as a result of insufficient inventory, including potential lost sales, backorder handling, and decreased customer satisfaction.