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determine the break-even contribution margin ratio for a company with a fixed overhead of 92000 and revenues of 450000

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Final answer:

The break-even contribution margin ratio cannot be computed without knowing the variable costs. It is the percentage of sales exceeding variable costs necessary to cover fixed costs.

Step-by-step explanation:

To determine the break-even contribution margin ratio, we need to calculate the ratio of contribution margin to revenues. The contribution margin is found by subtracting variable costs from revenues, but as variable costs are not provided, we cannot compute an exact break-even contribution margin ratio.

However, for example, if a company has fixed overheads of $92,000 and revenues of $450,000, the break-even point occurs when the total costs (fixed and variable) equal the revenues. Assuming variable costs were provided and thereafter the contribution margin can be calculated, the contribution margin ratio would then be the contribution margin divided by the total revenues, indicating the percentage of sales that exceed the variable costs. At the break-even point, this ratio must be high enough to also cover the fixed costs of $92,000.

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