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Author Question: The contribution margin ratio can be used to (Read 45 times)

kled

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Question 1

The formula for the contribution margin ratio is
◦ contribution margin divided by (sales less variable costs).
◦ contribution margin divided by gross profit.
◦ contribution margin divided by net income.
◦ contribution margin divided by sales.

Question 2

The contribution margin ratio can be used to
◦ estimate the behavior of fixed cost.
◦ determine the impact of fixed costs on contribution margin.
◦ determine an increase in fixed costs due to an increase in sales volume.
◦ determine the increase in profits from a given dollar increase in sales revenue.


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Marked as best answer by kled on Feb 5, 2023

ellie

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kled

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Reply 2 on: Feb 5, 2023
Gracias!


kjohnson

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Reply 3 on: Yesterday
Wow, this really help

 

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