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Calculate the Contribution Margin Ratio of a Company with Sales

question 34

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Calculate the contribution margin ratio of a company with sales of $180,000 and operating income of $37,000.Variable costs of the company are 52% of sales.


Definitions:

Normative Social Influence

The influence to conform with the positive expectations of others, often to gain approval or avoid social sanctions, unrelated to actual beliefs or facts.

Cognitive Dissonance

The unsettling sensation experienced when a person simultaneously upholds multiple conflicting beliefs, ideas, or values.

Group Members

Individuals who belong to a defined collective or team, sharing common goals or purposes.

Informational Social Influence

The process where individuals change their opinions or behavior in response to accessing new information or knowledge from others.

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