The Dollar Amount by Which Sales Can Decline Before an Operating

question 113

Multiple Choice

The dollar amount by which sales can decline before an operating loss is incurred is called the:

• A)Contribution margin.
• B)Contribution margin ratio.
• C)Margin of safety.
• D)Relevant range.

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Definitions:

Economic Efficiency

A condition where resources are allocated in a way that maximizes the net benefit to society.

Runs Out

A situation where a supply or quantity of something is completely used up or exhausted.

Next Century

A future period of 100 years, used to forecast or plan long-term visions or developments.

Economic Viability

The ability of an entity or activity to sustain itself financially over the long term.