Which of the Following Equations Is True

question 144

Multiple Choice

Which of the following equations is true?

• A) Contribution margin = Sales revenue × Variable cost ratio
• B) Contribution margin ratio = Contribution margin / Variable costs
• C) Contribution margin = Fixed costs
• D) Contribution margin ratio = 1 − Variable cost ratio

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Definitions:

Point Estimate

A single value or statistic that is used to estimate the value of a population parameter.

Population Proportions

The fraction or percentage of a population that exhibits a specific characteristic or attribute.

Standard Error

The standard deviation of the sampling distribution of a statistic, providing a measure of the precision of the estimated population parameter.

Interval Estimate

An estimate of a population parameter that specifies a range of possible values within which the parameter is expected to lie, often expressed with a level of confidence.