Given a constant sales price, the larger the contribution margin, the:

A) Higher the variable cost per unit as a percentage of the sales price.
B) Higher the cash break-even point.
C) Lower the financial break-even point.
D) Lower the fixed costs as a percentage of the sales price.
E) Lower the gross profit per unit sold.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating the amount contributed towards covering fixed costs and generating profit.

Financial Break-even Point

The level of revenue necessary for a firm to cover all its operating expenses and financial costs, achieving a net income of zero.

Gross Profit

The financial gain obtained after deducting the cost of goods sold from sales revenue, before subtracting any operating expenses.