Question: Contribution Margin Ratio and CVP Analysis : A company has sales revenue of $300,000, variable costs of $180,000, and fixed costs of $70,000. Calculate the

  1. Contribution Margin Ratio and CVP Analysis: A company has sales revenue of $300,000, variable costs of $180,000, and fixed costs of $70,000. Calculate the contribution margin and contribution margin ratio. Using the contribution margin, determine the sales volume required to achieve a target net income of $50,000. Explain the significance of the contribution margin ratio in decision-making processes.

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