Use This Information to Answer the Following Question

question 68

Multiple Choice

Use this information to answer the following question. The debt to equity ratio is

• A)0.46.
• B)0.67.
• C)2.18.
• D)0.33.

---

Definitions:

Contribution Margin

The selling price per unit minus the variable cost per unit, reflecting the amount contributing to covering fixed costs.

Variable Cost

Costs that vary directly with the level of production or with the volume of services provided.

Fixed Costs

Constant expenses, such as rent, salaries, and insurance, that are not influenced by the quantity of production or sales.

Fixed Costs

Fixed costs are business expenses that remain unchanged regardless of the level of production or sales activity, such as rent, salaries, and insurance.