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Compute the contribution margin percentage. Determine the formula for the contribution margin percentage.

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Final answer:

The contribution margin percentage is calculated by dividing the contribution margin by the sales revenue and multiplying by 100.

Step-by-step explanation:

The contribution margin percentage is calculated by dividing the contribution margin by the sales revenue and multiplying by 100. The formula for the contribution margin percentage is:

Contribution Margin Percentage = (Contribution Margin / Sales Revenue) * 100

The contribution margin is the difference between sales revenue and variable costs. It represents the amount of revenue that is available to cover fixed costs and contribute to profit.

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