Answer :
The dollar amount of the contribution margin is usually higher than the dollar amount of the controllable margin.
When contribution margins are higher, what does this indicate?
The better a contribution margin percentage or ratio is, the closer it is to 100 percent. The more money available to cover the company's overhead costs, also known as fixed costs, the higher the ratio.
Is gross margin always greater than contribution margin?
Due to the fact that fixed overhead costs are included in gross margin, contribution margin will either be equal to or greater than gross margin. Since fixed costs are not included in contribution margin, contribution margin will almost certainly always be lower than gross margin.
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