Production-Volume Ratio

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Definitions
Contribution Margin Ratio
Contribution Margin Ratio Contribution-to-Sales Ratio Production-Volume Ratio Profit-Volume Ratio Profitability Sales Value Financial Metrics Cost Accounting
The contribution margin ratio, also known as the contribution-to-sales ratio, production-volume ratio, or profit-volume ratio, is a financial metric that shows the relationship between a product’s contribution margin and its sales value. This ratio is essential for ranking products based on their relative profitability.
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