What Percentage of the Contribution Margin Is Profit on Units

question 17

Multiple Choice

What percentage of the contribution margin is profit on units sold in excess of the break-even point?

• A) It's 50% to the contribution margin ratio.
• B) It's equal to the variable cost ratio.
• C) It's equal of the gross profit ratio.
• D)It's 100%.

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Definitions:

Dendrite

The branch-like extensions of a neuron that receive signals from other neurons.

Motor Neurons

Nerve cells forming part of a pathway along which impulses pass from the brain or spinal cord to a muscle or gland.

Absolute Refractory Period

A time interval after an action potential during which another action potential cannot be initiated, regardless of the strength of the stimulus.

Millivolts

A unit of electric potential equal to one thousandth of a volt, commonly used in measuring the strength of electrical signals.