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I understand the contribution margin ratio = (Selling price - Variable Costs) / Selling Price. Is it possible to use the contribution margin ratio and a profit figure to find a Fixed Costs value? I don't think I have a full understanding of what the CMR really is...
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,
An association has the capacity to process 40,000 tons of cotton seed per year. This processing results in several salable products including oil, meal, lint and hulls. A marketing study indicates that the association can sell its output for the coming year at $400 per ton processed. Cost of...
What is the company's contribution margin ratio? Sales $1,200,000 Variable expenses 800,000 Contribution margin 400,000 Fixed expenses 300,000 Net operating income $100,000
Im am trying to figure out how to compute contribution margin ratio. I found the sales mix percentage, but where do I go from there. You can use whatever numbers you want as long as you can give me a break down on how to compute the contribution margin ratio
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