What ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit? A. Margin of safety ratio B. Contribution margin ratio C. Costs and expenses ratio D. Profit ratio

What ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit? A. Margin of safety ratio B. Contribution margin ratio C. Costs and expenses ratio D. Profit ratio

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1MC: The amount of a units sales price that helps to cover fixed expenses is its ____________________. A....

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Question

What ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit?

A. Margin of safety ratio
B. Contribution margin ratio
C. Costs and expenses ratio
D. Profit ratio

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