The Contribution Margin Ratio

Multiple Choice

The contribution margin ratio:

A) Is the percent of each sales dollar that remains after deducting total unit variable cost.
B) Is the percent of each sales dollar that remains after deducting total unit fixed cost.
C) Is the percent of each sales dollar that remains to cover fixed costs and contribute to the managers' incomes.
D) Cannot be used in conjunction with other analytical tools.
E) Is the same as the unit contribution margin.