Contribution ratio — OpenTuition Forums

CCamelia10y ago

Hi! How do I find sale price for a product if I have variable cost / unit - 1,5 $ and contribution ratio is 55%? Thank you, camelia

John MoffatTutor10y ago#1

If the CS ratio is 55% then the variable costs must be 45% of selling price. So the selling price is the variable cost divided by 45%.

CCamelia10y ago#2

Thanks a lot for the answer.

John MoffatTutor10y ago#3

You are welcome :-)

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