Contribution margin ratio is the ratio of contribution margin to ________.
A) net sales revenue
B) cost of goods sold
C) total variable costs
D) total fixed costs

Question

Quizplus · Accepted Answer

Contribution margin is calculated by deducting the total variable costs from the net sales revenue. Therefore, contribution margin ratio is calculated by dividing the contribution margin by the net sales revenue.

Contribution Margin Ratio Is the Ratio of Contribution Margin to ________