Q262
Contribution margin per unit is divided by selling price to calculate
A.
fixed margin percentage
B.
contribution margin percentage
AnswerC.
variable margin percentage
D.
breakeven margin percentage
Answer: Option B
Solution
Answer: Option B
Solution:
Contribution margin per unit is divided by selling price 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.