The contribution margin ratio always increases when the:

A) break-even point decreases.
B) variable expenses as a percentage of sales decrease.
C) break-even point increases.
D) variable expenses as a percentage of sales increase.

Contribution Margin Ratio

The percentage of each sales dollar that remains after variable costs are subtracted, indicating how much contributes towards fixed costs and profit.

Break-Even Point

The level of sales or production at which a business's revenues exactly cover its expenses, leading to neither profit nor loss.

Variable Expenses

Costs that fluctuate in direct proportion to changes in activity level or volume, such as raw materials and direct labor costs.