The contribution margin per unit expressed as a percentage of the product's selling price is the:
A) Volume variance.
B) Margin of safety.
C) Contribution margin ratio.
D) Break-even point.
E) Rate of return on sales.

Question

Quizplus · Accepted Answer

The contribution margin ratio is the contribution margin per unit expressed as a percentage of the product's selling price. It is an important tool in determining the profitability of a product and the company's overall financial health. It is calculated by dividing the contribution margin per unit by the selling price per unit.

The Contribution Margin Per Unit Expressed as a Percentage of the Product's