How is the contribution margin ratio calculated?
A)variable costs/contribution margin.
B)fixed costs/contribution margin.
C)sales/contribution margin.
D)contribution margin/sales.

Question

Quizplus · Accepted Answer

The contribution margin ratio is calculated by dividing the contribution margin (the difference between sales and variable costs) by sales. Therefore, D is the correct choice as it divides contribution margin by sales to give the contribution margin ratio.

How Is the Contribution Margin Ratio Calculated