Question

the contribution margin per unit expressed as a percentage of the products selling price is the: multiple choice volume variance. margin of safety. contribution margin ratio. break - even point. rate of return on sales.

Explanation:

The contribution margin per unit is calculated as selling price per unit minus variable cost per unit. When this is expressed as a percentage of the product's selling price, it is called the contribution margin ratio. The formula for contribution margin ratio is \((\text{Contribution Margin per Unit} \div \text{Selling Price per Unit})\times100\%\).

• Volume variance is related to the difference in quantity sold compared to budgeted quantity.
• Margin of safety is the difference between actual (or projected) sales and break - even sales.
• Break - even point is the level of sales at which total revenue equals total costs (no profit, no loss).
• Rate of return on sales is net income divided by sales.

Answer:

Contribution margin ratio.