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

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.

What is the CM for each product(revenue-VC)

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.

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.