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    magswag's Avatar
    magswag Posts: 1, Reputation: 1
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    #1

    Mar 22, 2007, 03:52 PM
    Contributional margin
    If sales volume increases and all other factors remain constant then the contribution margin ratio will increase
    bunnyKutty's Avatar
    bunnyKutty Posts: 60, Reputation: 5
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    #2

    Mar 23, 2007, 03:20 AM
    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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