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:

Surgical Site

An anatomical location on the body where surgery is performed.

Infection

A disease caused by the entrance of pathogens into the body, leading to a harmful biological response by the host.

Surgical Site Infection

An infection that occurs after surgery in the part of the body where the surgery took place, often causing complications.

Microorganism

A microscopic organism, such as a bacterium, virus, or fungus, that can be pathogenic or beneficial in nature.