What Ratio Indicates the Percentage of Each Sales Dollar That

question 113

Multiple Choice

What ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit?

• A) margin of safety ratio
• B) contribution margin ratio
• C) costs and expenses ratio
• D) profit ratio

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Definitions:

Promissory Estoppel

A legal principle that prohibits a party from withdrawing a promise made to another party if the latter has relied on that promise to their detriment.

Detrimental Reliance

Occurs when a party takes action based on the promise of another, suffering harm as a result when the promising party fails to fulfill their commitment.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature in the workplace or educational settings.

Elderly Grandmother

A senior female relative who is a grandparent, often associated with wisdom and family history.