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:

Multiplier

In economics, it refers to the factor by which gains in total output are greater than the change in spending that caused it.

GDP

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Spending Changes

Alterations in the amount of money that consumers, businesses, and governments expend on goods and services.

Expansionary Fiscal Policy

A government policy aimed at increasing government spending and/or cutting taxes to stimulate the economy and increase demand.