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:

Principal Debtor

The principal debtor is the original borrower responsible for repaying a debt or obligation in a financing agreement.

Contract

A contract that is enforceable by law, made between two or more entities, detailing their responsibilities and entitlements.

Security Interests

A legal claim or lien on assets, granted to secure the performance of an obligation or the payment of a debt.

Agricultural Liens

Security interests in farm products, such as crops or livestock, which secure payment or performance of an obligation.