Which of the following statements regarding the, Ask an Expert

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Which of the following statements regarding the contribution margin ratio is not true?

a. The contribution margin ratio is equal to the contribution margin per unit divided by the selling price.

b. The contribution margin ratio is the amount of each sales dollar that goes toward covering fixed costs and generating a profit.

c. The contribution margin ratio is equal to variable cost per unit divided by fixed cost per unit.

d. The contribution margin ratio is useful when companies that sell a variety of products find out break-even point.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M973906

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