Question: Calculate the contribution margin ratio for a product with a selling price of $50, variable cost per unit of $20, and fixed costs of $10,000.

Calculate the contribution margin ratio for a product with a selling price of $50, variable cost per unit of $20, and fixed costs of $10,000. Interpret the contribution margin ratio and discuss its significance in pricing decisions and break-even analysis. Additionally, suggest strategies for increasing the contribution margin.

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