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    rrmcgowan's Avatar
    rrmcgowan Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Feb 3, 2009, 02:28 PM
    How do I calculate contribution margin and contribution margin ratio
    Proposal A Proposal B Proposal C
    Selling price $99 $129 $99
    Variable cost 55 129 49
    Contribution margin $44 $0 $50
    Contribution margin ratio


    How do I calculate the contribution margin ratio and is the contribution margin correct?

    Thank you,
    rrmcgowan
    hamzashakaa's Avatar
    hamzashakaa Posts: 161, Reputation: 8
    Junior Member
    		  
    #2

    Feb 4, 2009, 03:49 AM

    The contribution margin is calculated by subtracting the variable cost from the selling price. The contribution margin ratio is calculated by dividing the contribution margin by the selling price.
    leegomezstar's Avatar
    leegomezstar Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Jan 26, 2010, 08:37 AM

    What is the CM for each product(revenue-VC)
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #4

    Jan 26, 2010, 07:08 PM

    I'm not sure if you're trying to ask a question, in which case you should start your own thread for your own question, and be more specific about what you're trying to ask.

    Or if you're trying to answer, the thread is a year old. I don't think OP cares anymore.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #5

    Jan 26, 2010, 07:11 PM

    Never mind - I see you started another post. This is why it's confusing when you do that, tagging onto someone else's and then double posting the thing. There's a lot of this going on today and it's getting pretty mind boggling.
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