Question

The contribution-margin ratio is: Select one: a. the difference between the selling price and the variable cost per unit. b. unit contribution margin divided by the selling price. c. variable cost per unit divided by the selling price. d. fixed cost per unit divided by variable cost per unit. e. unit contribution margin divided by fixed cost per unit.

Answer 1

In business, the contribution-margin ratio is b. unit contribution margin divided by the selling price.

What is the contribution-margin ratio?

After finding the contribution margin by subtracting the variable costs from the selling costs, you can then find the contribution margin ratio in the following formula:

= (Unit contribution margin) / Selling price

This shows how much of the selling price will be left after variable costs are accounted for.

Find out more on the contribution margin ratio at https://brainly.com/question/24039258.

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