Managers Can Quickly Forecast the Operating Income by Multiplying ________

question 112

Multiple Choice

Managers can quickly forecast the operating income by multiplying ________ and then subtracting fixed costs.

• A) projected sales revenue by the contribution margin ratio
• B) projected sales units by the contribution margin ratio
• C) projected sales revenue by the unit contribution margin
• D) projected sales units by the variable cost ratio

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Definitions:

Ordinary Shares

Equity securities that represent ownership in a company, giving holders voting rights and a share in the company's profits through dividends.

Cumulative

Referring to a total that increases by adding successive amounts.