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1 July, 20:20

Managers can quickly forecast the total contribution margin by multiplying the

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  1. 1 July, 20:40
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    Answer: projected sales revenue by the contribution margin ratio

    Explanation:

    The total contribution margin that is generated by an entity shows the total earnings that is available to pay for a fixed expense and to generate a profit.

    Total contribution margin (CM) is calculated when the total variable costs TVC is subtracted from total sales S. The contribution margin per unit is equal to the sales price per unit minus the variable costs per unit.
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