The Contribution Margin Ratio Can Be Calculated As

question 63

Multiple Choice

The contribution margin ratio can be calculated as:

• A)total contribution margin divided by selling price per unit
• B)selling price per unit divided by contribution margin per unit.
• C)contribution margin per unit divided by total sales
• D)contribution margin per unit divided by the selling price per unit

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Definitions:

Selling Expenses

Costs incurred directly and indirectly in selling products or services, including advertising, sales commissions, and store operations.

Factory Overhead Rate

A measure used to assign the total indirect manufacturing costs to individual units of production, often based on a standard costing system or activity-based costing.

Machine Hours

A measure of the total time that machines are operating during a specific period.

Factory Overhead

Refers to the indirect costs associated with manufacturing, excluding direct materials and direct labor.