Which of the Following Is the Correct Calculation for the Contribution

question 70

Multiple Choice

Which of the following is the correct calculation for the contribution margin ratio?

• A) sales revenue divided by variable costs.
• B) sales revenue divided by contribution margin.
• C) contribution margin divided by sales revenue.
• D)contribution margin divided by variable costs.

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Definitions:

Median

The middle value in a set of data, arranged in ascending or descending order, or the average of the two middle values if there is an even number of observations.

Even Number

An integer that is divisible by 2 without leaving a remainder.

Observations

Data points collected during a study or experiment, representing individual instances or occurrences of the variables being studied.

Variance

A measure of the dispersion or spread of a set of data points around their mean value; it quantifies how much the data points differ from the mean.