Asked by
Kiranjot kaur Saran
on Oct 23, 2024
Verified
Cost volume profit applied to the service industry
A nursing home has the following annual budget: 
Calculate the budgeted contribution margin ratio.
A) 3%
B) 22%
C) 25%
D) 33.33%
Budgeted Contribution Margin Ratio
The projected ratio that represents the difference between sales revenue and variable costs, expressed as a percentage of sales revenue.
Service Industry
A sector of the economy that provides intangible goods or services to consumers, such as health care, education, and financial services.
- Apply CVP analysis to decision-making in both manufacturing and service industries.
- Understand and calculate contribution margin and contribution margin ratio.
Verified Answer
KM
Learning Objectives
- Apply CVP analysis to decision-making in both manufacturing and service industries.
- Understand and calculate contribution margin and contribution margin ratio.