Pamcar Industries sells IT equipment, specialising in printers and faxes. The following statement reflects the contribution margin
Question:
Pamcar Industries sells IT equipment, specialising in printers and faxes. The following statement reflects the contribution margin of each activity, and overall profit levels.
Required
a. Calculate the contribution margin ratios for each of the two areas of activity, and in total.
b. Using the total contribution margin ratio, calculate the level of sales required of each product to break even.
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Step by Step Answer:
a The contribution margin ratio for each activity and in total is calculated as Printers ...View the full answer
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