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Calculate the contribution margin ratio for a company with sales of $200,000, variable costs of $120,000, and fixed costs of $50,000. Interpret the ratio in
Calculate the contribution margin ratio for a company with sales of $200,000, variable costs of $120,000, and fixed costs of $50,000. Interpret the ratio in terms of the company's profitability, discussing how changes in sales volume or cost structure could impact overall profitability. Additionally, elaborate on the concept of contribution margin and its role in guiding managerial decisions related to pricing, product mix, and cost control strategies.
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