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General Managerial Accounting question: So on this Excel project im doing, it asks for the Contribution margin ratio. When I look up on how to
General Managerial Accounting question:
So on this Excel project im doing, it asks for the Contribution margin ratio. When I look up on how to calculate it, it describes the calculation as (revenue-variable costs)/revenue. Nothing worked until I came on here and found someone calculated it as: CM per unit/ selling price per unit.
The second calculation worked but as I am doing research i cant find this explination on this calculation ANYWHERE. Can someone exlplain this to me? im confused on why this correct calculation isnt shown anywhere.
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