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:

Durable Products

Items designed for long-term use and made to withstand wear and tear over time, reducing the need for frequent replacement and hence reducing waste.

Biodegradable Material

Substances that can be broken down naturally by microorganisms into simpler, non-toxic components, reducing environmental impact.

Households

Units of living or domestic arrangements composed of one or more people who share living quarters and provisions for daily living.