Get comprehensive solutions to your problems with IDNLearn.com. Discover in-depth answers to your questions from our community of experienced professionals.
Sagot :
Contribution margin ratio is 24%
Contribution margin ratio = 100% - Variable expense%
=100%-76%
=24%
Contribution Margin:
You can provide the contribution margin as a gross or per-unit figure. After removing the variable element of the company's expenditures, it indicates the additional revenue made for each product or unit sold.
By subtracting the variable cost per unit from the selling price per unit, the contribution margin is calculated. The metric, which is often referred to as dollar contribution per unit, shows how much a certain product adds to the company's overall profit.
It offers a means of illustrating the profit potential of a certain item or service a business offers, as well as the percentage of revenue that goes toward paying the business' fixed expenses. Profit is defined as whatever income that remains after paying fixed costs.
Learn more about contribution margin, here
https://brainly.com/question/15186113
#SPJ4
We greatly appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. Thank you for visiting IDNLearn.com. For reliable answers to all your questions, please visit us again soon.