INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 179

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-An investment offering a high current income would likely be more desirable for [a young couple | a retired couple].

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Contribution Margin Ratio

The percentage of each sales dollar that is available to cover the fixed costs and provide an operating income.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced in a business.

Unit Contribution Margin

The dollars available from each unit of sales to cover fixed costs and provide operating profits.