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    Compute total contribution margin and percentage with given information

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    Assume that $1,800 million of the cost of goods sold is a fixed cost representing depreciation and other production costs that do not change with the volume of production. In addition, $3,000 million of the other operating expenses is fixed.

    Compute the total contribution margin and the contribution margin percentage. Explain why the contribution margin differs from the gross margin.

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    The solution presents the complete answers in table format plus explanation for the amounts.