The Contribution-Margin Ratio Is Defined As

question 24

Multiple Choice

The contribution-margin ratio is defined as:

• A)the difference between the selling price and the variable cost per unit.
• B)fixed cost per unit divided by variable cost per unit.
• C)variable cost per unit divided by the selling price.
• D)unit contribution margin divided by the unit selling price.
• E)unit contribution margin divided by fixed cost per unit.

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Definitions:

Systematic Numbering System

An organized method of assigning numbers to items in a way that encodes information about the items.

Mission

A statement or vision that defines the core purpose and objectives of an organization, guiding its decision-making and strategic direction.

Organization

An organized group of people with a particular purpose, such as a business, government body, or charity.

Simple Payback

A financial metric that calculates the time required for an investment to generate cash flows or savings sufficient to recover its initial cost.