Which of the Following Reflects the Ratio of Fixed Costs

question 59

Multiple Choice

Which of the following reflects the ratio of fixed costs to the contribution margin ratio?

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

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Definitions:

Articles Of Partnership

A legal document that sets out the terms and conditions under which a partnership operates, including the responsibilities of the partners.

Written Agreement

A formalized contract documenting the terms, conditions, rights, and obligations agreed upon by the parties involved, enforceable by law.

Undermine Partnership

Refers to actions or situations that weaken or damage the trust, collaboration, and effectiveness between partners in a business partnership.

Competes

Refers to the action of taking part in an event or contest with the aim to win against others.