Which of the Following Formulas Is the Right Formula for Calculating

question 290

Multiple Choice

Which of the following formulas 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:

Acceptance

In contract law, the agreement by the party receiving an offer to the terms of that offer, leading to a binding contract.

Contract

A legally binding agreement between two or more parties that outlines obligations they must fulfill.

Without Reserve

In auctions, this refers to items being sold with no minimum bidding threshold, indicating they will be sold to the highest bidder regardless of the price.

Auction

An auction is a sale where items are offered for purchase to the individual who presents the highest offer.