It is the ratio generated by dividing the Variable cost over total Sales/Revenue
different between variable intervals and fixed ratio
what is variable gear ratio steering steering system?
ratio
yes
Cross multiply then solve for the variable.
sales-variable cost= contribution
Most steering boxes are now variable ratio.
It is a direct [linear] proportionality.
contribution margin ratio = (sales - variable costs) / Sales
The contribution ratio is the relationship between total sales revenue and total variable costs. If the components change, such as an increase in sales revenue or a decrease in variable costs, the contribution ratio will increase. Conversely, if sales revenue decreases or variable costs increase, the contribution ratio will decrease.
slope
If Variable cost and sales ratio is provided then by using mathematical equation approach mixing figures can be found by using provided figures. Sales = Variable cost + Sales percentage of (Variable cost)