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2016 2017 2018 Sales $ 135,987 $ 177,866 $ 232,887 Variable expenses Cost of sales 88,265 111,934 139,156 Fulfillment 14,095 20,199 27,222 Marketing 7,233 10,069
| 2016 | 2017 | 2018 | |
| Sales | $ 135,987 | $ 177,866 | $ 232,887 |
| Variable expenses | |||
| Cost of sales | 88,265 | 111,934 | 139,156 |
| Fulfillment | 14,095 | 20,199 | 27,222 |
| Marketing | 7,233 | 10,069 | 13,814 |
| Technology and content | 8,042.50 | 11,310 | 14,418.50 |
| Total variable expenses | 117,636 | 153,512 | 194,610 |
| Contribution margin | $ 18,351 | $ 24,354 | $ 38,277 |
| Fixed expenses | |||
| Fulfillment | 3,524 | 5,050 | 6,805 |
| Technology and content | 8,042.50 | 11,310 | 14,418.50 |
| General and admin | 2,432 | 3,674 | 4,336 |
| Other | 167 | 214 | 296 |
| Total fixed expenses | 14,165 | 20,248 | 25,856 |
| Operating income | $ 4,186 | $ 4,106 | $ 12,421 |
| CM Ratio | 0.13495 | 0.13692 | 0.16436 |
| Breakeven Dollar Sales | $ 104,967.8579 | $ 147,878.1625 | $ 157,314.2805 |
| Margin of Safety (Dollars) | $ 31,019 | $ 29,988 | $ 75,573 |
| Safety margin % of sales | 22.810% | 16.86% | 32.45% |
based on the information above - Discuss the trend in the contribution margin (dollars), and likely reasons for this trend. What is the trend in the contribution margin ratio, and what are likely reasons for the changes in this ratio? What insight does this ratio provide for analyzing the trend in the dollar magnitude of the contribution margin from question 2? analyze the margin of safety?
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