In Comparison to Selling a Product with a Low Contribution

question 21

Multiple Choice

In comparison to selling a product with a low contribution margin ratio,selling a product with a high contribution margin ratio always:

• A)Requires less dollar sales volume to cover a given level of fixed costs.
• B)Results in a greater margin of safety.
• C)Results in higher operating income.
• D)Results in a higher contribution margin per unit sold.

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Definitions:

Rubisco

An enzyme involved in the first major step of carbon fixation in the process of photosynthesis, catalyzing the reaction between carbon dioxide and ribulose bisphosphate.

Thylakoid Membrane

A membrane-bound compartment inside chloroplasts and cyanobacteria where the light-dependent reactions of photosynthesis occur.

Chlorophyll

A group of green pigments found in the chloroplasts of plants, algae, and some bacteria, essential for photosynthesis.

Light-Dependent Reactions

The first stage of photosynthesis where light energy is captured and converted to chemical energy in the form of ATP and NADPH.