Discuss what the contribution margin is and how it is used.
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Discuss what the contribution margin is and how it is used.
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- Define and distinguish between contribution margin per unit and contribution margin percentage?How do you calculate Benefit Cost Ratio (BCR). Mention the decision making process of BCR.Please explain what is meant by the contribution margin. Also, please provide an example of how the contribution margin ratio is calculated and how the unit contribution margin is calculated.
