Which of the following statements is false? a. The contribution margin ratio is particularly valuable in situations in which the dollar sales of one product must be traded off against the dollar sales of another product. b. Products that yield the smallest contribution margin per dollar of sales are the most profitable. c. The contribution margin ratio shows how the contribution margin will be affected by a change in total sales. d. The contribution margin ratio is the contribution margin expressed as a percentage of sales.
Which of the following statements is false? a. The contribution margin ratio is particularly valuable in situations in which the dollar sales of one product must be traded off against the dollar sales of another product. b. Products that yield the smallest contribution margin per dollar of sales are the most profitable. c. The contribution margin ratio shows how the contribution margin will be affected by a change in total sales. d. The contribution margin ratio is the contribution margin expressed as a percentage of sales.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Which of the following statements is false?
a. The contribution margin ratio is particularly valuable in situations in which the dollar sales of one product must be traded off against the dollar sales of another product.
b. Products that yield the smallest contribution margin per dollar of sales are the most profitable.
c. The contribution margin ratio shows how the contribution margin will be affected by a change in total sales.
d. The contribution margin ratio is the contribution margin expressed as a percentage of sales.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8aeb4c9c-8d33-4b47-954d-a4d3ce02aa40%2Fe13d00bf-9451-4436-ab63-a4a24ee48be2%2Fejw5fw8k.png&w=3840&q=75)
Transcribed Image Text:Which of the following statements is false?
a. The contribution margin ratio is particularly valuable in situations in which the dollar sales of one product must be traded off against the dollar sales of another product.
b. Products that yield the smallest contribution margin per dollar of sales are the most profitable.
c. The contribution margin ratio shows how the contribution margin will be affected by a change in total sales.
d. The contribution margin ratio is the contribution margin expressed as a percentage of sales.
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