The Contribution Margin Ratio Is Equal to the Contribution Margin

question 17

True/False

The contribution margin ratio is equal to the contribution margin divided by sales, and shows the proportion of each sales dollar available to cover fixed costs and contribute to profit.

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Definitions:

Work Efforts

The amount of physical or mental energy applied to tasks and objectives within a work environment.

Positive Inequity

A perception where an individual believes they receive more rewards in comparison to their inputs than others.

Negative Inequity

A perception that one's inputs are greater than the outputs received, especially in comparison to others, leading to feelings of unfairness.

Instrumentality

The perceived relationship between performance and the attainment of certain outcomes, an important concept in motivation theories such as expectancy theory.