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Company Contribution Margin

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Sales (30,000 basket balls at $50) 1,500,000
less Variable Expenses 900,000
Contribution margin 600,000
Less fixed Expenses 280,000
Net income 320,000

Compute the company's contribution margin percentage and break even point in both units and percentage

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Solution Summary

This solution explains how to compute the company's contribution margin percentage and break even point in both units and percentage.

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The contribution margin ratio
Contribution Margin/Revenue = ...

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