The Ratio That Shows How Much of Each Sales Dollar

question 94

Multiple Choice

The ratio that shows how much of each sales dollar that is available to cover operating expenses and provide a profit after the cost of goods sold has been covered is called

• A)Contribution margin percentage
• B)Return on equity.
• C)Internal rate of return.
• D)Gross margin percentage.

---

Definitions:

Thimble

A small metal or plastic cap with a grooved edge used to protect the finger while pushing a needle through fabric in sewing; or, a fitting used in rope systems to protect the loop from wear.

Torquing

The process of applying a specific amount of twist or force to fasteners, such as bolts and nuts, to ensure they are properly secured.

Clamping Force

The force applied to hold two or more objects together, preventing movement or separation.

Yield Point

The stress at which a material begins to deform plastically, after which deformation will occur without any increase in load.