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Examveda

If fixed cost is $15000 and breakeven revenue is $45000 then contribution margin will be

A. 33.34%

B. 43.34%

C. 23.00%

D. 25.00%

Answer: Option A

Solution(By Examveda Team)

Contribution margin = Fixed cost ÷ Breakeven revenue × 100
= $15000 ÷ $45000 × 100 = 33.34%.

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