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lisov135 [29]
3 years ago
5

How do you calculate Contribution Margin?

Mathematics
1 answer:
borishaifa [10]3 years ago
8 0
Formula for Contribution Margin

1. Contribution Margin = Net Sales Revenue – Variable Costs. OR.

2. Contribution Margin = Fixed Costs + Net Income. To determine the ratio:

3. Contribution Margin Ratio = (Net Sales Revenue -Variable Costs ) / (Sales Revenue) Sample Calculation of Contribution Margin.
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