What Is Total Contribution Margin Divided by Sales Revenue

question 23

Multiple Choice

What is total contribution margin divided by sales revenue?

• A)the variable cost ratio
• B)the fixed cost ratio
• C)the sales ratio
• D)the contribution margin ratio

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Definitions:

Interest Rates

The percentage charged on the total amount of borrowed money, reflecting the cost of debt for the borrower and the return on investment for the lender.

Unintended Inventory Changes

Variations in stock levels that occur when actual sales differ from anticipated sales, not resulting from planned actions by businesses.

Keynesian Models

Economic theories that emphasize the total spending in the economy and its effects on output and inflation, developed by John Maynard Keynes.

Planned Investment

Expenditures that businesses intend to make in the future for new capital assets, such as buildings and machinery, to increase production capabilities.