Which One of the Following Is an Important Point to Note

question 4

Multiple Choice

Which one of the following is an important point to note about open sandwiches?

• A) They should be appealing to the eye.
• B) They should have plenty of topping.
• C) They should have a limited amount of topping.
• D) Danish ingredients should be used.

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Definitions:

Cost-Volume-Profit Analysis

The examination of the relationships among selling prices, sales and production volume, costs, expenses, and profits.

Contribution Margin

The amount of revenue remaining after deducting variable costs, which contributes to covering fixed costs and generating profit.

Gross Profit

The financial metric indicating the difference between revenue and the cost of goods sold, showcasing how efficiently a company is producing or sourcing its products.

Contribution Margin Ratio

The percentage of each sales dollar that remains after variable costs are subtracted, contributing to covering fixed costs and profit.