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The contribution margin ratio is interpreted as the percent of: Multiple choice question. each variable cost dollar that remains after deducting fixed costs each sales dollar that remains after deducting fixed costs each sales dollar that remains after deducting unit variable cost

Sagot :

Answer: each sales dollar that remains after deducting unit variable cost

Explanation:

The contribution margin ratio is interpreted as the percent of each sales dollar that remains after the deduction of unit variable cost.

The contribution margin ratio refers to the difference between the sales that a company makes and its variable costs which is expressed as a percentage. The ratio simply indicates the amount of money that is available to cover the fixed costs.

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