The Contribution margin ratio is found by: a. Subtracting total fixed costs from sales and dividing this

Question:

The Contribution margin ratio is found by:

a. Subtracting total fixed costs from sales and dividing this by the number of units produced.

b. Adding total variable costs and fixed costs and dividing by the selling price per unit

c. Taking the selling price per unit and subtracting variable costs from it and dividing by the selling price per unit.

d. Dividing total fixed and variable costs by the selling price per unit.

e. B & C only.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...