Select the Correct Statement Regarding the Contribution Margin Ratio

Multiple Choice

Select the correct statement regarding the contribution margin ratio.

A) The contribution margin ratio can be calculated using either total amounts or per unit amounts.
B) The contribution margin ratio equals contribution margin per unit divided by variable cost per unit.
C) Total fixed costs divided by the contribution margin ratio equals the break-even point in units.
D) An increase in variable cost per unit will cause the contribution margin ratio to increase.