The Contribution Margin Ratio Is

question 75

Multiple Choice

The contribution margin ratio is:

• A) the same as the variable cost ratio
• B) the same as profit
• C) the portion of equity contributed by the stockholders
• D) the same as the profit-volume ratio

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Definitions:

Capital

Financial assets or physical resources that are used by businesses to produce goods and services and generate wealth.

Rich

Having a large amount of wealth or resources, enabling a higher standard of living and purchasing power.

U.S. Farmers

Individuals or enterprises in the United States engaged in the production of food, feed, fiber, and other goods by systematic raising of plants and animals.

Produce More

Refers to the increase in the quantity of goods or services generated by a company or economy.