Multiplying the contribution margin ratio by the expected change in sales equals the expected change in contribution margin.

Name: Multiplying the contribution margin ratio by the expected change in sales equals the expected change in contribution margin.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true according to the formula for calculating expected change in contribution margin:

Expected Change in Contribution Margin = Contribution Margin Ratio x Expected Change in Sales

Multiplying the Contribution Margin Ratio by the Expected Change in Sales