Which of the Following Is True of a Contribution Margin

Multiple Choice

Which of the following is true of a contribution margin ratio?

A) If the contribution margin ratio increases, the variable cost ratio decreases
B) It is the proportion of each sales dollar available to cover variable costs.
C) It is complementary to the net profit ratio.
D) If the contribution margin ratio increases, the price must have decreased.
E) If the contribution margin ratio increases, more units must be sold to break even.