The Tool Useful for Calculating Contribution Margin and Operating Income

question 18

Multiple Choice

The tool useful for calculating contribution margin and operating income is:

• A)margin of safety.
• B)sensitivity analysis.
• C)the breakeven point.
• D)contribution margin per unit.
• E)operating leverage.

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Definitions:

Private Sector

The part of the economy owned and operated by individuals and companies for profit, as opposed to the public sector operated by the government.

Picketing

The act of demonstrating or protesting, often by workers, outside a place of employment to voice grievances or demands.

Statutes

Laws established by a legislative body governing behavior and setting forth the legal responsibilities and duties of parties.

Free Contractual Nature

Describes the principle that parties are free to negotiate and enter into contracts without undue interference or restrictions.