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-   -   Contributional margin (https://www.askmehelpdesk.com/showthread.php?t=74928)

  • Mar 22, 2007, 03:52 PM
    magswag
    Contributional margin
    If sales volume increases and all other factors remain constant then the contribution margin ratio will increase
  • Mar 23, 2007, 03:20 AM
    bunnyKutty
    Quote:

    Originally Posted by magswag
    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.

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