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Calculate the contribution margin ratio for Company S, which has a total sales revenue of $500,000, variable costs of $200,000, and fixed costs of $100,000.

  • Calculate the contribution margin ratio for Company S, which has a total sales revenue of $500,000, variable costs of $200,000, and fixed costs of $100,000. Discuss the importance of the contribution margin ratio in analyzing the profitability of individual products or services and making pricing decisions.

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