COST-VOLUME-PROFIT RELATIONSHIPS
CONTRIBUTION MARGIN RATIO The contribution margin (CM) ratio is the ratio of contribution margin to total sales: in = s If the company has only one product, the CM ratio can also be computed using per unit data: in = ice EXAMPLE: For Nord Corporation, the CM ratio is 40%, computed as follows: Contribution margin $100,000 CM ratio= = =40% Total ... ................
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