Answer:
contribution margin ratio= 0.57
Step-by-step explanation:
Giving the following information:
Sales revenue $ 1,024,000
Total variable cost:
Variable manufacturing expense $ 241,000
Variable selling and administrative expense $ 199,320
Total= $440,320
To calculate the contribution margin ratio, we need to use the following formula:
contribution margin ratio= (sales - total variable cost) / sales
contribution margin ratio= (1,024,000 - 440,320) / 1,024,000
contribution margin ratio= 0.57