Contribution margin per unit, total contribution margin and contribution margin ratio: Contribution margin is the difference between sales and the variable cost. Contribution margin ratio can be defined as the difference between sales and variable cost expressed as the percentage of sales.
The formulas used to calculate contribution margin per unit is −
The formulas used to calculate total contribution margin is −
The formulas used to calculate contribution margin ratio is −
Requirement: To calculate the missing figures.
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Horngren's Accounting (12th Edition)
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