Question

Ndungula Ltd produces a single product. The company's estimated net profit for the coming year is as follows: Sales $750 000 Less: variable costs $352 500, contribution $397 500, Less fixed costs $225 000 Net profit $172 000. if the unit selling price and the unit variable costt each increase by 5%, what effecct would this have on the contribution margin ratio?

Answer 1

Explanation:

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