Explore BrainMass

Contribution margin ratio

Devlin Company has two divisions, C and D. The overall company contribution margin ration is 30% with sales in the two divisions totaling $500,000. If variable expenses are $300,000 in Division C, and if Division C's contribution margin ratio is 25%, then sales in Division D must be?

Solution Preview

Sales in Division D must be 35% to make overall contribution margin ratio of 30%


*** Remember, this ...

Solution Summary

This provides the steps to calculate the Contribution margin ratio