Which of the Following Formulae Is the Right Formula for Calculating

question 89

Multiple Choice

Which of the following formulae is the right formula for calculating contribution margin ratio?

• A)Contribution margin ratio = Contribution margin + Net sales revenue
• B)Contribution margin ratio = Contribution margin ÷ Net sales revenue
• C)Contribution margin ratio = Contribution margin × Net sales revenue
• D)Contribution margin ratio = Contribution margin - Net sales revenue

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Definitions:

Quasi-contract

A quasi-contract is a legal concept where the court imposes a contract-like obligation on a party to prevent unjust enrichment, even though no actual agreement exists between the parties.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made when the other party has reasonably relied on that promise to their detriment.

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed to be enforceable.

Oral Contract

A verbal agreement between parties that is legally binding, though more difficult to enforce than written contracts due to the lack of physical evidence.