Question

atzinger Company budgets sales of $1,270,000, fixed costs of $157,200, and variable costs of $698,500. What is the contribution margin ratio for Matzinger Company?

Answer 1

contribution margin ratio= 0.45

Step-by-step explanation:

Giving the following information:

Budgets sales of $1,270,000, and variable costs of $698,500.

To calculate the contribution margin ratio, we need to use the following formula:

contribution margin ratio= (sales - variable cost) / sales

contribution margin ratio= (1,270,000 - 698,500) / 1,270,000

contribution margin ratio= 0.45