Contribution Margin Ratio Is Equal to ________

question 218

Multiple Choice

Contribution margin ratio is equal to ________.

• A) fixed costs divided by contribution margin per unit
• B) net sales revenue per unit minus variable costs per unit
• C) net sales revenue minus variable costs
• D) contribution margin divided by net sales revenue

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Definitions:

Corporate Bankruptcy

A legal process that allows struggling or unable to pay outstanding debts companies to reorganize or liquidate assets under the protection of the law.

Investment Banking

A segment of banking operations that helps individuals or organisations raise capital and provide financial consultancy services, including mergers and acquisitions.

Lehman Brothers

A global financial services firm that declared bankruptcy in 2008, an event that significantly contributed to the global financial crisis.

Asset Allocation

The investment strategy of dividing a portfolio among different asset categories, such as stocks, bonds, and cash to minimize risk and maximize returns.