Economics
Contribution margin ratio
Contribution margin ratio is a financial measure of value, return, cost, or cash flow.
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K = CM / R
- 01Given
- 02Calculation
- 03Answer
What it means
Contribution margin ratio is a financial measure of value, return, cost, or cash flow.
How it works and where it is used
Use this calculation for finding break-even points, safety margins, and sales volume required for target profit.