The Contribution Margin Ratio Can Be Used to

Multiple Choice

The contribution margin ratio can be used to

A) determine the increase in profits from a given dollar increase in sales revenue.
B) determine the impact of fixed costs on contribution margin.
C) both to determine the increase in profits from a given dollar increase in sales revenue and to determine the impact of fixed costs on contribution margin.
D) neither to determine the increase in profits from a given dollar increase in sales revenue nor to determine the impact of fixed costs on contribution margin.