The contribution margin ratio is:
A) the same as the variable cost ratio
B) the same as profit
C) the portion of equity contributed by the stockholders
D) the same as the profit-volume ratio

Question

Quizplus · Accepted Answer

The contribution margin ratio is the same as the profit-volume ratio, as both represent the portion of sales revenue that exceeds total variable costs and contributes to covering fixed costs and generating profit.

The Contribution Margin Ratio Is