Which of the Following Formulas Is Used to Calculate the Contribution

question 64

Multiple Choice

Which of the following formulas is used to calculate the contribution margin ratio?

• A) (Sales − Fixed costs) ÷ Sales.
• B) (Sales − Cost of goods sold) ÷ Sales.
• C) (Sales − Variable costs) ÷ Sales.
• D) (Sales − Total costs) ÷ Sales.

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