What Is the Ratio of Fixed Expenses to the Contribution

question 50

Multiple Choice

What is the ratio of fixed expenses to the contribution margin ratio?

• A)the break-even point in sales
• B)the break-even point in units
• C)the variable cost ratio
• D)the margin of safety

---

Definitions:

Industry Context

The broader environmental and situational factors, including trends, challenges, and opportunities, that influence the operations and strategies of businesses within a specific industry.

Team Experience

The collective skills, knowledge, and expertise that members of a group bring to achieve a common goal.

Culture

The sum of attitudes, customs, values, and beliefs that distinguishes one group of people from another and is transmitted from generation to generation.

Community's Assumptions

The common beliefs or expectations that members of a community hold about how things work or should work.