Contribution Margin Ratio Is Equal to ________

question 218

Multiple Choice

Contribution margin ratio is equal to ________.

• A) fixed costs divided by contribution margin per unit
• B) net sales revenue per unit minus variable costs per unit
• C) net sales revenue minus variable costs
• D) contribution margin divided by net sales revenue

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Definitions:

Nash Equilibrium

A concept in game theory where no player can gain by changing their strategy while the other players keep theirs unchanged.

Maximin Strategy

A strategy used in decision-making that maximizes the minimum gain that can be achieved, often used in situations involving uncertainty and risk.

Incumbent Monopoly

A situation where a single company dominates a market or industry, often due to having established a strong presence over time.

Excess Capacity

The situation in which a firm produces less than its potential output, often indicated by idle resources or facilities.