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09-09-2021
Mathematics

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How do you calculate Contribution Margin?

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09-09-2021

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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