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The Following Formula Can Be Used to Determine the Contribution

Question 52

Multiple Choice

The following formula can be used to determine the contribution margin ratio:


A) after-tax profit divided by (1 - tax rate) .
B) contribution margin per unit divided by selling price per unit.
C) selling price per unit less variable costs per unit.
D) fixed costs ($) divided by contribution margin per unit ($) .

Correct Answer:

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