What Is the Ratio of Fixed Expenses to the Contribution

question 50

Multiple Choice

What is the ratio of fixed expenses to the contribution margin ratio?

• A)the break-even point in sales
• B)the break-even point in units
• C)the variable cost ratio
• D)the margin of safety

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Definitions:

Accounting Principle

Guidelines and rules that govern the accounting practices and procedures.

Financial Statement Presentation

The manner in which a company's financial data is organized and displayed in its financial statements.

Comprehensive Income

The total change in equity for a reporting period that comes from transactions, other events, and circumstances from sources not directly related to investments by or distributions to equity shareholders.

Unrealized Changes

Refers to changes in the value of assets or liabilities that have occurred but have not been realized through a transaction.