What are the unit contribution margin and the contribution margin ratio? What do these measures reveal about a company's cost structure?
What will be an ideal response?
The unit contribution margin is the sales price per unit minus the total variable cost per unit. The contribution margin contributes to covering fixed costs and generating profits on a per unit basis. The contribution margin ratio is the unit contribution margin divided by sales price per unit.
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Dun & Bradstreet publishes
a. data on average ratios and relationships. b. credit ratings of companies. c. data on industry norms. d. all of these.
A firm has $60,000 in cash, $200,000 in accounts receivable, and $400,000 in current liabilities. Its quick ratio is _____
a. 0.5 b. 0.65 c. 1.7 d. 2.0
When using the formula for writing a goal, the distance from X to Y is known as “the gap.”
a. True b. False
Holiday pay, sick leave, and vacation pay are examples of
A. payment for time not worked. B. benefits required by law. C. categories of health care benefits. D. unearned benefits.