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Define and explain the contribution margin ratio

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Reference no: EM131538861

Question: 1. Assume that a straight line on a CVP chart intersects the vertical axis at the level of fixed costs and has a positive slope that rises with each additional unit of volume by the amount of the variable costs per unit. What does this line represent?

2. Nokia is thinking of expanding sales of its most popular cell-phone model by 65%. Do you expect its variable and fixed costs for this model to stay within the relevant range? Explain.

3. Define and explain the contribution margin ratio.

Reference no: EM131538861

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