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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 and discuss how changes in sales volume or cost structure could impact overall profitability. Additionally, explain the significance of contribution margin analysis in guiding pricing decisions and product mix optimization strategies.
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