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Contribution Margin Ratio a. Young Company budgets sales of $890,000, fixed costs of $26,000, and variable costs of $115,700. What is the contribution margin ratio for Young Company

Sagot :

Zvikoidn

Answer:

87 %

Explanation:

contribution margin ratio = Contribution ÷ Sales

therefore,

contribution margin ratio = ($890,000 - $115,700) ÷ $890,000

                                        = 0.87 or 87 %

The contribution margin ratio for Young Company is 87 %.

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