What is the contribution margin ratio


Sales: $210,896 Variable Costs: $4,225 Total fixed expenses:$ 78,585 Number units sold per year: 437

1. What is the contribution margin per unit of your product or service?

2. What is the contribution margin ratio?

3. What is sales volume in dollars at the breakeven point?

4. What is sales volume in units at the breakeven point?

5. What sales volume in dollars is required to have $10,000 in net income? $50,000 in net income? $100,000 in net income.

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Accounting Basics: What is the contribution margin ratio
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