When Sales Dollars Are Used as the Measure of Volume

question 65

Multiple Choice

When sales dollars are used as the measure of volume in the cost-volume-profit equation,the focus is on solving for total revenue required to break even or a target profit rather than total units.The contribution margin ratio is defined as which of the following?

• A)total contribution margin divided by total sales.
• B)unit contribution margin divided by unit sales price.
• C)total contribution margin divided by total sales and unit contribution margin divided by unit sales price.
• D)the sum of fixed costs plus target profits divided by unit sales price.

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