Because Contribution Margin Is Based on Sales Price and Variable

question 17

True/False

Because contribution margin is based on sales price and variable costs,the ratio can be calculated using either the total amounts or the unit amounts.

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Definitions:

Personal Selling

Personal selling involves direct contact between a salesperson and a potential customer for the purpose of selling a product or service.

Public Relations Department

A division within a company or organization tasked with managing its public image and communications with stakeholders, media, and the public.

Image Management

The practice of overseeing and maintaining a person's or organization's reputation and public perception through various strategies and communications.

Absolute Costs

The total costs associated with the production or provision of goods or services, without consideration of relative efficiency.