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AMP 415 Module 5 DQ 2

AMP 415 Module 5 DQ 2

Contribution margin ratio is the percentage of sales, shows how the contribution margin will be affected by a change in total sales. —Can be used in cost-profit calculations. Used in target profit and break even analysis and can be used to quickly estimate the effects on profits of a change in sales revenue.

http://www.accountingtools.com/contribution-margin-ratio

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