Managers Can Quickly Forecast the Total Contribution Margin by Multiplying

question 257

Multiple Choice

Managers can quickly forecast the total contribution margin by multiplying the

• A)projected sales units by the variable cost ratio.
• B)projected sales units by the contribution margin ratio.
• C)projected sales revenue by the unit contribution margin.
• D)projected sales revenue by the contribution margin ratio.

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Definitions:

Market Rate

The prevailing interest rate available in the marketplace for instruments of comparable risk and maturity.

Bond Certificates

Documents that serve as legal proof of ownership of bonds, detailing the terms of the bond issue such as its maturity date, coupon rate, and issuer.

Market Value

The price that a buyer pays to purchase shares of capital stock in the open market. Of course, for every buyer there is a seller.

Face Value

The nominal or dollar value printed on a security or instrument, such as a bond or currency note.