CHAPTER 11
5-1The contribution margin (CM) ratio is the ratio of the total contribution margin to total sales revenue. ... Change in contribution margin (50 units × $8.00 per unit) 400 . New net operating income. $8,400 . ... 1.The equation method yields the required unit sales, Q, as follows: Profit = Unit CM × Q − Fixed expenses. $6,000. $6,000. $80 ... ................
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