In Two Companies Making the Same Product and with the Same

question 161

True/False

In two companies making the same product and with the same total sales and total expenses, the contribution margin ratio will be higher in the company with a higher proportion of fixed expenses in its cost structure.

---

Definitions:

Concrete Step

A specific, actionable measure taken to achieve a particular goal or to implement a plan.

Financial Compensation

Payment provided to someone in exchange for an injury, loss, or the performance of a service or job.

Freedom Petitions

Arguments for liberty presented to New England’s courts and legislatures in the early 1770s by enslaved African-Americans.

Enslaved African-Americans

Individuals of African descent who were forcibly brought to the United States and subjected to forced labor and servitude until the abolition of slavery.