The Greater the Ratio of Variable Costs to Sales, The

question 70

Multiple Choice

The greater the ratio of variable costs to sales, the:

• A)More each additional sale contributes to coverage of fixed costs
• B)Lower the level of profitability
• C)More units must be sold to cover fixed charges
• D)Lower the benefit of conducting a sensitivity analysis

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Definitions:

Traditional Nonprofits

Organizations that operate for the benefit of the public or a specific group of individuals, without seeking to generate profits for owners or shareholders.

Enterprising Nonprofits

Nonprofit organizations that engage in commercial activities as a strategy for generating revenue to support their mission and activities.

Microlending

The practice of offering small loans to individuals, often in developing countries or underserved communities, to foster entrepreneurship.

Kiva

A platform that allows people to lend money via the internet to low-income entrepreneurs and students in over 80 countries.