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25. Which of the following is true of a contribution margin ratio? a.It is complementary to the net profit ratio. b.It is the proportion of

25.

Which of the following is true of a contribution margin ratio?

a.It is complementary to the net profit ratio.

b.It is the proportion of each sales dollar available to cover variable costs.

c.If the contribution margin ratio increases, the variable cost ratio decreases.

d.If the contribution margin ratio increases, the price must have decreased.

e.If the contribution margin ratio increases, more units must be sold to break even.

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