The contribution margin ratio is computed as:
A) (sales minus fixed expenses) / sales
B) sales / variable expenses
C) (sales minus variable expenses) / sales
D) (fixed expenses plus variable expenses) / sales

Question

Quizplus · Accepted Answer

The contribution margin ratio is computed as (sales minus variable expenses) / sales, which shows the percentage of each sales dollar remaining after variable expenses are covered.

The Contribution Margin Ratio Is Computed As