Posted: May 17th, 2017

A 45% contribution margin ratio means that:

A 45% contribution margin ratio means that:

A. The company should contribute 45% of its operating income to qualified charities for maximum tax benefits.

B. 55% of the company’s revenue is consumed by fixed and variable costs.

C. The company’s revenue has increased by 45% during the current accounting period.

D. 45% of the company’s revenue is available to cover fixed costs and to contribute toward operating income.