Question: Someone asks you to explain what contribution margin ratio is and how it can be used in profit planning. What will you tell them? Explain

them? Explain how changes in activity level (increases and decreases) affect variable

Someone asks you to explain what contribution margin ratio is and how it can be used in profit planning. What will you tell them? Explain how changes in activity level (increases and decreases) affect variable costs, fixed costs, and mixed costs. Why is Cost Volume Profit Analysis important to management

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