Explain what the contribution margin tells a company

Reference no: EM13216000

Holzhauer Corporation, a merchandising company, reported the following results for March:

Cost of goods sold is a variable cost in this company.
a. What is the gross margin for March?
b. What is the contribution margin for March?
c. Once the contribution margin is determined, explain what the contribution margin tells a company?
d. Explain the differences and benefits when the contribution margin format is used instead of the traditional format approach (i.e., gross margin approach).

Reference no: EM13216000

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