Which of the Following Is the Mathematical Expression of Contribution

question 154

Multiple Choice

Which of the following is the mathematical expression of contribution margin ratio?

• A) Contribution margin ratio = Contribution margin percentage × Revenues (in dollars)
• B) Contribution margin ratio = Contribution margin percentage × Fixed costs (in dollars)
• C) Contribution margin ratio = Contribution margin percentage × Variable costs (in dollars)
• D) Contribution margin ratio = Contribution margin percentage × Operating leverage

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Definitions:

Suction Lines

Pipes that transport refrigerant from the evaporator towards the compressor in a refrigeration system.

Discharge Lines

Tubes or pipes through which compressed gas or fluid is released from a system.

Swashplate Type

A design commonly found in hydraulic pumps and motors, featuring a slanted disk that converts rotational motion into linear motion.

A/C Compressor

A mechanical pump within an air conditioning system, responsible for compressing refrigerant and circulating it through the system.