The Formula Used to Calculate the Contribution Margin Ratio Is

question 58

Multiple Choice

The formula used to calculate the Contribution Margin Ratio is:

• A) Contribution Margin Ratio = (purchases - fixed costs) / sales
• B) Contribution Margin Ratio = (purchases - variable costs) / sales
• C) Contribution Margin Ratio = (sales - fixed costs) / sales
• D) Contribution Margin Ratio = (sales - variable costs) / sales

---

Definitions:

Greatest Common Monomial Factor

The highest monomial that evenly divides all terms of a given polynomial.

Negative Real Number

Any real number that is less than zero, found to the left of zero on the number line.

Greatest Common Monomial Factor

The highest monomial that divides evenly into each term of an algebraic expression.

Factor By Grouping

A method for factoring polynomials that involves grouping terms with common factors and then factoring out those common factors.