Butik Menawan involves in the business of selling scarfs under the brand name Moon. The following is information related to its operation for the month of June 2021:

$

Sales (4,600 pieces @ $200) 920,000 Variable costs per piece: Direct material 17 Direct labour 8 Factory overhead 15 Fixed costs per year: Factory overhead 170,000 Selling and administration 326,000

Based on the above information, answer the following questions:

a) Explain the meaning of contribution margin. Then, determine the contribution margin per piece and contribution margin ratio for Moon.