In debtors management
This query is : Resolved
30 August 2011
a company has a contribution/sales ratio 40%,means variable cost/sales ratio is 60%. Currently fixed cost is 30lacs.Now consider the situation situation1 situation2 35lacs 40lacs respectively, FIXED COST, Is there any change in contribution ratio as FC changes? and how it will be calculated?
CMA Ramesh Krishnan
(Expert)
30 August 2011
when changes in fixed cost dose not impact on contribution ratio. only changes in selling price or sales and variable cost will affect your contribution percentage
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