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QS 18-5 Contribution margin ratio LO A1 Compute and interpret the contribution margin ratio using the following data: sales,
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Answer #1

Contribution margin

Sales $5,900
Less: Variable cost $3,009
Contribution margin $2,891
Contribution margin ratio
Choose Numerator: / Choose Denominator: = Contribution margin ratio
Contribution margin / Sales = Contribution margin ratio
$2,891 / $5,900 = 49.0%
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