Which of the Following Factors Allows for the Prediction of a Higher

question 46

Multiple Choice

Which of the following factors allows for the prediction of a higher divorce rate in the future?

• A) cultural acceptance for divorce
• B) the long-term consequences of increased life expectancy
• C) structural transformation of the economy
• D) all of the above

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Definitions:

Margin of Safety

The difference between actual or projected sales and the break-even point, often expressed as a percentage.

Contribution Margin Ratio

A financial metric showing the percentage of revenue that exceeds total variable costs, indicating how much revenue contributes to fixed costs and profit.

Break-even Sales

The amount of revenue needed to cover all fixed and variable costs, resulting in no profit or loss.

Variable Cost

Costs that change in proportion to the level of production or sales activity, such as raw materials and direct labor costs.