Post Utme Christopher University 2023 Commerce Question 38

Practice objective / multiple choice question 38 from the 2023 Post Utme Christopher University Commerce examination.

Post Utme Christopher University 2023 Commerce Objective / Multiple Choice
Question 38 POST_UTME_CHRISTOPHER_UNIVERSITY • 2023 • COMMERCE • objective

A firm's 'Cost-Volume-Profit' (CVP) analysis helps to determine the relationship between costs, volume, and profit. What is the formula for calculating the contribution margin?

Answer Options

Correct Answer A. \frac{Selling\ Price - Variable\ Costs}{Selling\ Price}
B. \frac{Selling\ Price + Variable\ Costs}{Selling\ Price}
C. \frac{Variable\ Costs - Selling\ Price}{Selling\ Price}
D. \frac{Selling\ Price - Fixed\ Costs}{Selling\ Price}
Correct Answer
A
Correct Option:
\frac{Selling\ Price - Variable\ Costs}{Selling\ Price}

About This Question

This is Post Utme Christopher University 2023 Commerce Question 38. It is one of the objective questions from the 2023 Post Utme Christopher University Commerce examination.

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