Question

A contribution margin ratio of 37% means

Answer 1

The contribution margin ratio, accordingly, will equal to $860 divide by $2,300 or 0.37 or 37%. This means that for every 10 swimsuits a company sells, 37% of the sales revenue is available to cover fixed costs and provide a profit.

Answer 2

Answer:

This means that for every 10 swimsuits a company sells , 37% of the sales revenue is available to cover fixed costs and provide a profit.