Which of the Following Is True Regarding the Contribution Margin

question 11

Multiple Choice

Which of the following is true regarding the contribution margin ratio of a company that produces only a single product?

• A) As fixed expenses decrease, the contribution margin ratio increases.
• B) The contribution margin ratio multiplied by the selling price per unit equals the contribution margin per unit.
• C) The contribution margin ratio will decline as unit sales decline.
• D) The contribution margin ratio equals the selling price per unit less the variable expense ratio.

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