The Contribution Margin Ratio

question 98

Multiple Choice

The contribution margin ratio:

• A) Is the percent of each sales dollar that remains after deducting total unit variable cost.
• B) Is the percent of each sales dollar that remains after deducting total unit fixed cost.
• C) Is the percent of each sales dollar that remains to cover fixed costs and contribute to the managers' incomes.
• D) Cannot be used in conjunction with other analytical tools.
• E) Is the same as the unit contribution margin.

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Definitions:

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Demand Curve

A visual chart illustrating how the quantity of a product that consumers want to buy varies with its price, usually showing a decline from left to right.

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