what are the difference between contribution margin,contribution margin ratio and contribution margin unit?
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The contribution margin ratio takes the concept of the contribution margin per unit produced and calculates it as a percentage of the sales price per unit. This shows what percentage of sales is made up of the contribution margin.
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The contribution margin ratio takes the concept of the contribution margin per unit produced and calculates it as a percentage of the sales price per unit. This shows what percentage of sales is made up of the contribution margin.
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