The Contribution Margin Ratio Is

question 75

Multiple Choice

The contribution margin ratio is:

• A) the same as the variable cost ratio
• B) the same as profit
• C) the portion of equity contributed by the stockholders
• D) the same as the profit-volume ratio

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Definitions:

Legally Liable

The state of being legally responsible for something, typically involving a financial or other obligation.

Sole Proprietorship

A business structure where a single individual owns, manages, and is responsible for all aspects of the business.

Business Owner

An individual who legally possesses a company, bearing both the risks and benefits associated with the enterprise.

Separate Entity

A concept in accounting and law where a business is recognized as having its own legal rights and obligations, distinct from those of its owners or members.