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cricket20 [7]
3 years ago
6

Jensen Company has a contribution margin ratio of 45%. This means that its variable costs are 55% of sales. True False

Business
1 answer:
Sergeeva-Olga [200]3 years ago
5 0

Answer:

Jensen company has a contribution margin ratio of 45%. This means that its variable costs are 55% of sales.

This statement is true

Explanation:

Contribution margin ratio is the ratio of contribution to sales. Since the contribution margin ratio is 45%, it implies that variable costs are 55% of sales.

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