# What is the contribution margin ratio? How is it used to calculate the break-even point?

What is the contribution margin ratio? How is it used to calculate the break-even point?

Contribution Margin

Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...

Contribution Margin

Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...

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**Related Book For**

## Cost Accounting Foundations and Evolutions

8th Edition

**Authors:** Michael R. Kinney, Cecily A. Raiborn

**ISBN:** 978-1111626822