Which of the Following Is True of a Contribution Margin

question 84

Multiple Choice

Which of the following is true of a contribution margin ratio?

• A) If the contribution margin ratio increases, the variable cost ratio decreases
• B) It is the proportion of each sales dollar available to cover variable costs.
• C) It is complementary to the net profit ratio.
• D) If the contribution margin ratio increases, the price must have decreased.
• E) If the contribution margin ratio increases, more units must be sold to break even.

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Definitions:

Emotional Readiness

An individual's preparedness to experience, manage, and appropriately express emotions in a given situation or in response to specific challenges.

Frustration

A feeling of disappointment and dissatisfaction arising from the hindrance of achieving a goal.

Verbal Behavior

The aspect of communication involving the use of spoken or written language to convey messages and interact with others.

Aggression

Behavior characterized by strong self-assertion with hostile or harmful intentions or outcomes, often driven by anger or frustration.