Question: Please explain the contribution margin and how it's different from gross margin. What is the significance of the contribution margin ratio , and how is

  1. Please explain the contribution margin and how it's different from gross margin.
  2. What is the significance of the contribution margin ratio, and how is the ratio useful in planning business operations?
  3. Pretend you're a business owner, what do you consider a good CM ratio? Talk about it and give an example.

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