The Formula for the Contribution Margin Ratio Is

question 74

Multiple Choice

The formula for the contribution margin ratio is

• A)Contribution margin divided by sales
• B)Contribution margin divided by net income
• C)Contribution margin divided by gross profit
• D)Contribution margin divided by sales less variable costs

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Definitions:

GAAP

A series of standard accounting protocols and measures adopted broadly for financial statement compilation.

R&D Expense

Expenses incurred in the process of discovering, developing, and enhancing a company's products or services, categorized as operating expenses.

Purchased Goodwill

The amount paid in excess of the fair market value of net assets during the acquisition of a company.