In Comparison to Selling a Product with a Low Contribution

question 21

Multiple Choice

In comparison to selling a product with a low contribution margin ratio,selling a product with a high contribution margin ratio always:

• A)Requires less dollar sales volume to cover a given level of fixed costs.
• B)Results in a greater margin of safety.
• C)Results in higher operating income.
• D)Results in a higher contribution margin per unit sold.