Select the Correct Statement Regarding the Contribution Margin Ratio

question 136

Multiple Choice

Select the correct statement regarding the contribution margin ratio.

• A) The contribution margin ratio can be calculated using either total amounts or per unit amounts.
• B) The contribution margin ratio equals contribution margin per unit divided by variable cost per unit.
• C) Total fixed costs divided by the contribution margin ratio equals the break-even point in units.
• D) An increase in variable cost per unit will cause the contribution margin ratio to increase.

Apply properties of logarithms to simplify or evaluate expressions.

Understand the dynamics and theories behind the structure of interest rates and yield curves.

Comprehend the distinction between stocks and bonds and the inverse relationship between stock prices and interest rates.

Recognize the role and characteristics of primary and secondary markets in securities trading.

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Definitions:

Automatically Processed

Information processed without conscious awareness, often quickly and efficiently.

Retracing Steps

A method of attempting to remember or find something by thinking or going back over the path or actions taken.

Identification

A psychological process whereby an individual assimilates an aspect, property, or attribute of another and is transformed, wholly or partially, by the model the other provides.

Implicit Memory

Memory that enhances task execution using prior experiences, without the individual consciously realizing those past experiences.