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Check QS 18-8 Contribution margin ratio and break-even dollars LO P2 SBD Phone Company sells its waterproof phone case for $9
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Contribution margin is calculated by deducting the variable cost amount from the sales revenue and contribution margin ratio is calculated by dividing sales to contribution margin. The break even point in dollar is also calculated by dividing the contribution margin ratio to total fixed cost incurred during the year.

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