Select the Correct Statement Regarding the Contribution Margin Ratio

question 136

Multiple Choice

Select the correct statement regarding the contribution margin ratio.

• A) The contribution margin ratio can be calculated using either total amounts or per unit amounts.
• B) The contribution margin ratio equals contribution margin per unit divided by variable cost per unit.
• C) Total fixed costs divided by the contribution margin ratio equals the break-even point in units.
• D) An increase in variable cost per unit will cause the contribution margin ratio to increase.

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Definitions:

Self-Administration

The act of a person taking medication or treatment independently, without professional assistance.

Identified Pathology

A diagnosed disease or medical condition that has been specifically determined in a patient.

Epidural Space

An area between the protective covering of the spinal cord (the dura mater) and the inner walls of the vertebral column, often targeted for anesthesia.

Dura Mater

The tough outermost membrane that envelops the brain and spinal cord within the skull and vertebral canal.