Contribution margin per unit is divided by selling price to calculate
A. fixed margin percentage
B. contribution margin percentage
C. variable margin percentage
D. breakeven margin percentage
Answer: Option B
Solution (By Examveda Team)
Contribution margin per unit is divided by selling price to calculate contribution margin percentage. The contribution margin ratio is the difference between a company's sales and variable expenses, expressed as a percentage. The total margin generated by an entity represents the total earnings available to pay for fixed expenses and generate a profit.This Question Belongs to Management >> Management Accounting
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