Total variable cost divided by price is
A) variable cost ratio.
B) revenue ratio.
C) contribution ratio.
D) sales ratio.
E) degree of operating leverage.

Name: Total variable cost divided by price is A) variable cost ratio. B) revenue ratio. C) contribution ratio. D) sales ratio. E) degree of operating leverage.
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Question

Quizplus · Accepted Answer

Total variable cost divided by price gives the variable cost ratio, which indicates the portion of each sales dollar used to cover variable costs.

Total Variable Cost Divided by Price Is