The Contribution Margin Ratio Is Computed As

question 51

Multiple Choice

The contribution margin ratio is computed as:

• A)Sales minus variable costs,divided by sales.
• B)Fixed costs plus variable costs,divided by sales.
• C)Sales minus fixed costs,divided by sales.
• D)Sales divided by variable costs.

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Definitions:

Postponement

A supply chain strategy that delays the final activities in the production process (such as assembly, packaging, or shipping) until the latest possible time to reduce inventory and increase customization.

Customization

The process of modifying goods or services to meet the needs or desires of specific customers.

Hewlett-Packard

A global information technology company known for its wide range of hardware and software products.

Virtual Company

A business model that operates on digital platforms without a physical presence, often relying on digital communication and distribution channels.