Operating Income Can Be Calculated By

question 39

Multiple Choice

Operating income can be calculated by:

• A)Dividing fixed costs by the contribution margin ratio.
• B)Multiplying fixed costs by the contribution margin ratio.
• C)Multiplying the margin of safety by the contribution margin ratio.
• D)Dividing the margin of safety by the contribution margin ratio.

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Definitions:

Bearing Fewer Children

The trend or individual choice of having a reduced number of offspring compared to previous generations.

General Partner

A partner who has unlimited liability.

Limited Partner

The partner’s liability is limited to the amount of investment in the partnership.

Mutual Partner

Relates to a type of partnership where all partners share equally in the responsibilities, profits, and losses of the business.