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What is contribution margin ratio

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Question - Given below are two independent scenarios:

1. Dream Co. has budgeted sales of $500,000, fixed costs are $240,000, and variable costs are $375,000. What is its contribution margin ratio? Enter the percentage amount as a whole number.

2. Pearl Company has sales of $825,000, variable costs are 30% of sales, and fixed costs are $360,000. What is its operating profit?

Reference no: EM132458565

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