In the Area of Cost-Volume-Profit Analysis,the Contribution Margin Ratio Shows

question 36

Multiple Choice

In the area of cost-volume-profit analysis,the contribution margin ratio shows how much each dollar of sales contributes to:

• A)Cover the fixed costs of the business and providing operating income.
• B)Fixed expenses and variable expenses.
• C)Variable expenses and interest charges.
• D)Variable expenses when production is at normal capacity.

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