The contribution margin ratio is the percent of each sales dollar that remains after deducting the unit variable cost.

Name: The contribution margin ratio is the percent of each sales dollar that remains after deducting the unit variable cost.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

The contribution margin ratio is calculated by dividing the contribution margin (sales minus variable costs) by total sales. It represents the percentage of each sales dollar that contributes towards covering fixed costs and generating profits.

The Contribution Margin Ratio Is the Percent of Each Sales