Assuming that widgeon co. can sell all of the products it is able to make, the most contribution margin it can earn step by month is $ fifty-six,000.
Margin (also known as gross margin) is income minus the cost of products offered. for instance, if a product sells for $100 and fees $70 to fabricate, its margin is $30. Or, stated as a percentage, the margin percentage is 30% (calculated because the margin is divided through sales).In finance, the margin is the collateral that a holder of a monetary instrument has to deposit with a counterparty to cover a few or all the credit score hazards the holder poses for the counterparty.
In a commercial enterprise, the margin is the earnings generated after accounting for prices, which is expressed as a percent. In making an investment, the margin is the deposit an investor places with a dealer whilst borrowing money to shop for safety. earnings margin is the measure of your commercial enterprise's profitability. it's far expressed as a percentage and measures how a whole lot of each dollar in income or services that your company continues from its income. earnings margin represents the business enterprise's net income when it's divided by using the net sales or sales.
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