The Contribution Margin Ratio of the Local Branch Is

question 44

Multiple Choice

The contribution margin ratio of the local branch is:

• A) 50%.
• B) 41%.
• C) 49%.
• D) 52%.

---

Definitions:

Marginal Revenue

The increase in income derived from the sale of one more unit of a good or service.

Total Cost

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Single Price Monopolist

A monopolist that charges all consumers the same price for its product, as opposed to practicing price discrimination.

Profit Area

The part of a business or market where the difference between revenue and costs is positive, indicating financial gain.