The Contribution Margin Ratio Can Be Used to

question 64

Multiple Choice

The contribution margin ratio can be used to

• A)determine the increase in profits from a given dollar increase in sales revenue.
• B)determine the impact of fixed costs on contribution margin.
• C)estimate the behavior of fixed cost.
• D)determine an increase in fixed costs due to an increase in sales volume.

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Definitions:

F-Distribution

Used in analysis of variance (ANOVA), describing the ratio of two variances drawn from normally distributed populations.

Degrees of Freedom

The quantity of variable values available in the concluding computation of a statistic.

Variability

A measure of the dispersion or spread of data points in a dataset, showing how much the data points differ from each other.

Sample Standard Deviations

A measure that quantifies the amount of variation or dispersion of a set of sample data values from the mean.