Which of the Following Formulae Is the Right Formula for Calculating

question 89

Multiple Choice

Which of the following formulae is the right formula for calculating contribution margin ratio?

• A)Contribution margin ratio = Contribution margin + Net sales revenue
• B)Contribution margin ratio = Contribution margin ÷ Net sales revenue
• C)Contribution margin ratio = Contribution margin × Net sales revenue
• D)Contribution margin ratio = Contribution margin - Net sales revenue

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Definitions:

Outdoor Furniture

Items designed for use outside the home, such as in gardens, patios, or by pool sides, typically made from weather-resistant materials.

Period Costs

Expenses that are not directly tied to the production of goods or services and are expensed in the period they are incurred, such as sales and administrative expenses.

Outdoor Furniture

Furniture designed for use outside the house, often made of materials resistant to weather, such as aluminum, plastic, or wood.

Casual Furniture Company

A business that specializes in creating and selling furniture designed for informal settings, typically emphasizing comfort and style.