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Company ABC generated total sales revenue of $150,000 in a specific period. During the same period, its total variable costs amounted to $60,000, and total
Company ABC generated total sales revenue of $150,000 in a specific period. During the same period, its total variable costs amounted to $60,000, and total fixed costs stood at $30,000. Determine the contribution margin ratio and interpret its significance in assessing the company's profitability and cost structure. Present a detailed calculation process and discuss the relevance of contribution margin in decision-making.
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