Question

Managers can quickly forecast the total contribution margin by multiplying the

A) projected sales revenue by the contribution margin ratio.
B) projected sales revenue by the unit contribution margin.
C) projected sales units by the contribution margin ratio.
D) projected sales units by the variable cost ratio.

Answer 1

Answer:C projected sales unit by the contribution margin ratio.

Step-by-step explanation:

Contribution margin ratio is the difference between sales price per unit and variable cost per unit divided by sales price per unit gives the contribution ratio per unit of sales .applying this on the no of units sold gives the total contribution margin ratio.