The Contribution Margin Ratio Explains the Percentage of Each Sales

question 155

Multiple Choice

The contribution margin ratio explains the percentage of each sales dollar that

• A)contributes towards variable costs.
• B)contributes towards sales revenue.
• C)contributes towards period expenses.
• D)contributes towards fixed costs and generating a profit.

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Definitions:

Comparative Advantage

An economic theory that describes how countries gain from trade by specializing in goods they can produce more efficiently than others.

American Automobile Industry

A sector of the economy focused on the manufacturing, marketing, and sale of motor vehicles in the United States.

Korean Steel Industry

The sector involving the production and manufacturing of steel within South Korea, known for its significant contribution to the global market.

Domestic Steel Industry

The segment of the economy that involves the production and distribution of steel within a specific country.