Managers can quickly forecast the total contribution margin by multiplying the
A)projected sales units by the variable cost ratio.
B)projected sales units by the contribution margin ratio.
C)projected sales revenue by the unit contribution margin.
D)projected sales revenue by the contribution margin ratio.

Question

Quizplus · Accepted Answer

The total contribution margin can be quickly forecasted by multiplying the projected sales revenue by the contribution margin ratio. This method directly applies the proportion of sales revenue that is not consumed by variable costs, providing an efficient way to estimate the total contribution margin.

Managers Can Quickly Forecast the Total Contribution Margin by Multiplying