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:

Proxy Fights

Strategies employed by shareholders to influence company management and policies by voting on corporate issues, often seen in contests for control of the board.

Nonfinancial Businesses

Companies whose primary activities involve the production or supply of goods and services, rather than financial transactions and investments.

Real Asset(s)

Physical or tangible assets that have intrinsic value such as real estate, commodities, and natural resources.

Agency Problem

Conflicts of interest among stockholders, bondholders, and managers.