Contribution Margin Ratio Is the Ratio of Contribution Margin to ________

question 30

Multiple Choice

Contribution margin ratio is the ratio of contribution margin to ________.

• A) net sales revenue
• B) cost of goods sold
• C) total variable costs
• D) total fixed costs

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Definitions:

Assembly Worker

An individual employed to construct various components into a final product in a manufacturing process.

Raw Materials Inventory Turnover

A measure of how frequently a company uses and replenishes its stock of raw materials within a specific period.

Raw Materials Used

Refers to the basic substances in their natural, modified, or semi-processed state used in manufacturing or production.

Raw Materials Purchased

This refers to the cost of raw materials bought by a company for the purpose of production in manufacturing processes.