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magswag
Mar 22, 2007, 03:52 PM
if sales volume increases and all other factors remain constant then the contribution margin ratio wil increase
bunnyKutty
Mar 23, 2007, 03:20 AM
if sales volume increases and all other factors remain constant then the contribution margin ratio wil increase
Yes.
Contribution = sales - Variable cost
If sales volume increases then Variable cost being constant Contribution increases.