The Ratio of Fixed Expenses to the Unit Contribution Margin

question 94

Multiple Choice

The ratio of fixed expenses to the unit contribution margin is the:

• A) break-even point in unit sales.
• B) profit margin.
• C) contribution margin ratio.
• D) margin of safety.

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Definitions:

Parasympathetic Action

Activities associated with the branch of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles.

Increased Metabolism

An elevation in the rate at which the body converts food and drink into energy, involving biochemical processes that maintain life within the cells.

ANS

The autonomic nervous system, a component of the peripheral nervous system that controls involuntary bodily functions such as heartbeat and digestion.

Hypothalamus

A region of the brain responsible for hormone production and regulation of essential body functions, including temperature, hunger, and thirst.