Question: How would you determine a company's contribution margin and contribution margin percent. Identify which specific variables should be included in the calculation. Illustrate your explanation

How would you determine a company's contribution margin and contribution margin percent.

  • Identify which specific variables should be included in the calculation.
  • Illustrate your explanation by calculating the contribution margin and contribution margin percent using hypothetical values.
  • Explain what your calculated results tell you about the company's sales and cost structure.

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