Question: 1. Explain the difference between the traditional income statement format and the contribution margin income statement format? 2. Calculate the contribution margin ratio and explain

1. Explain the difference between the traditional income statement format and the contribution margin income statement format?

2. Calculate the contribution margin ratio and explain how it can be used in CVP analysis.

3. What does it mean to expand the contribution model?

4. What does it mean that fixed expenses should not be unitized because they do not behave that way?

5. What does it mean to state that contribution margin ratio is frequently a more useful measurement than contribution margin per unit?

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