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Contribution margin ratio will remain the same at various levels of even if total fixed cost are altered true or false?

True. The contribution margin ratio, which is the ratio of contribution margin to sales, remains constant at various levels of sales regardless of changes in total fixed costs. This is because the contribution margin ratio is determined by the variable costs and selling price, not by fixed costs. Therefore, altering total fixed costs does not affect the contribution margin ratio.


When does the contribution margin ratio always increase?

The contribution margin ratio increases when the selling price per unit rises without a proportional increase in variable costs, or when variable costs per unit decrease while the selling price remains constant. Essentially, any scenario that increases the difference between sales revenue and variable costs will enhance the contribution margin ratio. Additionally, a shift in sales mix towards higher-margin products can also lead to an increase in the overall contribution margin ratio.


What is a creative margin?

A margin that is creative.


What is the difference between Contribution Margin per unit and contribution margin ratio?

Contribution margin ratio is overall total contribution margin while contribution margin ration per unit is the allocation of total production contribution margin to per unit basis.


How do you calculate the average contribution margin?

Formula for calculating average Contribution margin Average contribution margin = total contribution margin / total number of units

Related Questions

What is an absolute constant?

An absolute constant is a constant which maintains the same value wherever it occurs, such as pi.


What is an absolute term?

An absolute term is the constant in a polynomial expression.


What is absolute dollars?

constant dollar


How do you Models of Morphological Change?

Absolute (constant) Rate.


How do you calculate the selling price if you know the cost price and margin percentage?

Convert the margin percentage increase (decrease) to the absolute increase (decrease). Add (subtract) to (from) the selling price.


Excel converts all the formulas from?

uppercase to lowercase and/or absolute to constant


The word ephemera in conjunction with aboslute. example a state of absolute ephemery or ephemeral absolute could this a statement suggest a state of constant transition?

No. The state of constant transition is called flux. Ephemeral means "here for a day," the opposite of "constant," which means standing, enduring, lasting. Absolute means "free from all other things, unqualified, perfect."


What is the formula for finding pressure?

I suppose you mean the formula for the variation in pressure. The simplest expression of this is, at a fixed temperature,and for a given mass of gas, pressure x volume = constant. This is known as Boyle's Law. If the temperature is changing, then we get two relations: 1. If the pressure is fixed, volume = constant x temperature (absolute) 2. If the volume is fixed, pressure = constant x temperature (absolute) These can be combined into the ideal gas equation Pressure x Volume = constant x Temperature (absolute), or PV = RT where R = the molar gas constant. (Absolute temperature means degrees kelvin, where zero is -273 celsius)


What is true about the tempeature of a gas?

Lots of things are true... Here are some:* For constant pressure, the volume of an ideal gas is directly proportional to the absolute temperature. * For constant volume, the pressure of an ideal gas is directly proportional to the absolute temperature.


How can I find the uncertainty when a constant is divided by a value with an uncertainty?

To find the uncertainty when a constant is divided by a value with an uncertainty, you can use the formula for relative uncertainty. Divide the absolute uncertainty of the constant by the value, and add it to the absolute uncertainty of the value divided by the value squared. This will give you the combined relative uncertainty of the division.


What is the technique called to keep a cell reference constant when copying a formula or function?

Absolute Reference


What is the zero point on the absolute scale defined as?

SZero point in the absolute scale is the temperature at which the kinetic energy of the molecule becomes Zero. For a constant pressure volume would become zero and at constant volume pressure would become zero at this absolute zero temperature.