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.

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Definitions:

Financial Meltdown

A severe and sudden downturn in financial markets, leading to a loss of asset values and confidence in the financial system.

Economic Model

A simplified representation of economic processes, used to analyze and predict economic behaviors and outcomes.

Economists

Professionals specializing in the study of economies, analyzing the production, distribution, and consumption of goods and services.

Simulate

To imitate the operation of a real-world process or system over time for purposes of experiment or training.