The contribution margin ratio is equal to:
A. Total manufacturing expenses/Sales.
B. (Sales - Variable expenses)/Sales.
C. 1 - (Gross Margin/Sales).
D. 1 - (Contribution Margin/Sales).
Answer:B
The contribution margin ratio is equal to:
A. Total manufacturing expenses/Sales. B. (Sales - Variable expenses)/Sales. C. 1 - (Gross Margin/Sales). D. 1 - (Contribution Margin/Sales).