Contribution Margin Ratio Is Computed by Dividing

question 75

Multiple Choice

Contribution margin ratio is computed by dividing:

• A)contribution margin by sales revenue.
• B)contribution margin by operating income.
• C)sales revenue by contribution margin.
• D)operating income by contribution margin.

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Definitions:

Italy

A country located in Southern Europe, known for its rich history, culture, art, and contribution to the development of Western civilization.

Economic Significance

The importance or impact of an economic activity or phenomenon in terms of its effects on the overall economy, such as employment levels or GDP.

Exchange

The act of trading goods, services, currencies, or other items of value between parties.

Comparative Advantage

The ability of an individual or country to produce a good or service at a lower opportunity cost than competitors.