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Contribution margin ratio & BEP

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The income statement for Ellwell for 2000 is as follows:

Sales (10,000 units) $80,000
Less variable costs -$56,000
Contribution margin $24,000
Less fixed costs -$24,000
Net income $ 0

What is the contribution margin ratio?

The contribution margin at the break-even point:

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Solution Summary

Solution shows calculations of contribution margin ratio and the break-even point

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