The contribution margin ratio is the percent by which the margin of safety exceeds the break-even point.

Name: The contribution margin ratio is the percent by which the margin of safety exceeds the break-even point.
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The contribution margin ratio is the ratio of contribution margin to total sales, indicating the portion of sales revenue that can cover fixed costs and contribute to profit. It is not related to the margin of safety or break-even point.

The Contribution Margin Ratio Is the Percent by Which the Margin