ENTR 3P96 Lecture Notes - Gross Profit

Choose the correct option for the below:

The contribution margin ratio is equal to - 

A. Fixed costs divided by contribution margin per unit.

B. Net sales revenue per unit minus variable costs per unit.

C. Net sales revenue minus variable costs.

D. Contribution margin divided by net sales revenue.

Choose the correct answer for the below:

The contribution margin ratio is equal to -

1. fixed costs divided by contribution margin per unit.
2. net sales revenue per unit minus variable costs per unit
3. net sales revenue minus variable costs
4. contribution margin divided by net sales revenue 

The contribution margin ratio is

A. the difference between sales revenue and variable costs.

B. the difference between variable costs and fixed costs.

C. variable costs divided by fixed costs.

D. the contribution margin per unit divided by sales price per unit.