Concept introduction:
Contribution margin ratio:
Contribution margin ratio refers to the percentage of sales which is available to cover fixed costs and profit. In other words we can say that a ratio which is calculated on the basis of contribution margin per unit and sale price per unit, is known as contribution margin ratio.
Requirement 1:
Contribution margin ratio for each model.
Concept introduction:
Contribution margin ratio:
Contribution margin ratio refers to the percentage of sales which is available to cover fixed costs and profit. In other words we can say that a ratio which is calculated on the basis of contribution margin per unit and sale price per unit, is known as contribution margin ratio.
Requirement 2:
Which company’s smartphone sales contribute more to covering fixed costs?
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Managerial Accounting
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