Contribution margin per unit is divided by selling price to calculate
A. fixed margin percentage
B. contribution margin percentage
C. variable margin percentage
D. breakeven margin percentage
Answer: Option B
Solution(By Examveda Team)
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.Related Questions on Management Accounting
A. resourcing
B. value acquiring
C. production
D. value acquaintance
Examining of past performance, exploring alternative and planning future is
A. learning
B. alternating
C. examining
D. deciding
Time that a company takes to create and produce a new product is classified as
A. management factor
B. time factor
C. customer factor
D. chain factor
Purpose of management accounting is to
A. past orientation
B. help banks make decisions
C. help managers make decisions
D. help investors make decision
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