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.

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Definitions:

Systematic Desensitization

A therapeutic technique used to reduce phobia or anxiety responses by gradually exposing the person to the feared object or situation in a controlled manner.

Anxiety Hierarchy

A list of situations that provoke anxiety arranged in order from least to most anxiety-inducing, used in systematic desensitization therapy.

Deep Relaxation

A profound state of physical and mental calm achieved through techniques such as meditation, deep breathing, or yoga.

Behavioural Rehearsal

A technique used in therapy and training situations where individuals practice behaviors in a safe environment before applying them in real life.