Q252
Contribution margin per unit is divided by selling price of product to calculate
A.
selling margin percentage
B.
cost margin percentage
C.
discount percentage
D.
contribution margin percentage
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Contribution margin per unit is divided by selling price of product to calculate contribution margin percentage. The contribution margin ratio is the difference between a company's sales and variable expenses, expressed as a percentage. The total margin generated by an entity represents the total earnings available to pay for fixed expenses and generate a profit.