A.
Contribution Margin: It is defined as the difference between the sales and the variable cost.
Contribution Margin ratio: It is a ratio that measures the contribution margin generated by the company from the sales to make it avialable for paying the fixed cost and generate a profit. It is expressed as percentage of margin available from each dollar sales to pay fixed expenses and to provide profit. It is also called as profit-volume ratio. The formula to calculate the contribution margin ratio is as follows:
contribution margin for M Company.
B.
contribution margin ratio for M Company.
C.
the increase in income from operations.
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Bundle: Managerial Accounting, 14th + Cengagenowv2, 1 Term Printed Access Card
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub