Answer:
contribution margin ratio= 0.45
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
