Question: Explaining the Contribution Margin Statement: In simple terms that the owner ( who isn't an accountant ) can easily understand, explain why the Contribution Margin

Explaining the Contribution Margin Statement: In simple terms that the owner

(

who isn't an accountant

)

can easily understand, explain why the Contribution Margin Income Statement will be much more helpful for making internal business decisions than the Full Absorption Income Statement. Give at least two specific examples of business decisions where the Contribution Margin format would give clearer and better insights.

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