Answer:
Northeast Southwest
Rene Steve Colleen Paul
Sales Price $15,500 $16,000 $14,000 $18,000
Less: Variable costs:
COGS $9,300 $8,000 $8,400 $9,000
Commission $1,240 $1,920 $1,400 $1,440
Contribution Margin $4,960 $6,080 $4,200 $7,560
(Sales Price - Variable costs)
CM Ratio 32% 38% 30% 42%
(Contribution Margin / Sales )
Explanation:
Contribution margin is the net of sale amount and variable cost. It is the amount of return available to recover the fixed cost and make profit from after that for the business.
Contribution margin ratio is the rate of contribution margin to the sales value of the given product.