What is the contribution margin ratio

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Rasmussen company sells only one product at a regular price of 30$ per unit. Variable expenses are 75% of sales and fixed expenses are 44000$. Management has decided to decrease the selling price to 25.50$ in hopes of increasing its volume of sales. What is the contribution margin ratio when the selling price is reduced to 25.50$ per unit? (Please explain)

Reference no: EM13749772

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