Question: A) The contribution margin ratio tells managers -how much contribution margin is generated as a percentage of sales -the total contribution margin earned -the difference
A) The contribution margin ratio tells managers
-how much contribution margin is generated as a percentage of sales
-the total contribution margin earned
-the difference between every dollar of sales and the cost of goods
-how much contribution margin is generated by every dollar of fixed costs
B) At break-even point
- zero contribution margin is earned
-selling price equals variable cost per unit
-zero profit is earned
-contribution margin equals variable costs
C) Costs that do not differ between decision alternatives are called
-differential
-avoidable
-irrelevant
-accounting
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