The Contribution Margin Ratio Is (All on a Per Unit

question 33

Multiple Choice

The contribution margin ratio is (all on a per unit basis)

• A) the difference between the selling price and the variable cost.
• B) variable cost divided by selling price.
• C) contribution margin divided by selling price.
• D) contribution margin divided by fixed cost.

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Definitions:

Equilibrium GDP

The level of Gross Domestic Product where the total output of an economy equals the total demand.

Open Market

An economic system in which buying and selling of goods and services are conducted freely with minimal government intervention.

Government Bonds

Securities issued by a government to finance its expenditures, repaid over a period.

Open Market

A marketplace with few restrictions on entry or trade, allowing goods and services to be bought and sold freely.