If sales total $5,000,000, fixed costs total $400,000, and variable costs are 2,750,000, the contribution margin ratio is 45%.

Name: If sales total $5,000,000, fixed costs total $400,000, and variable costs are 2,750,000, the contribution margin ratio is 45%.
Brand: Quizplus
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Quizplus · Accepted Answer

The contribution margin is calculated as sales minus variable costs, which is $5,000,000 - $2,750,000 = $2,250,000. The contribution margin ratio is the contribution margin divided by sales, which is $2,250,000 / $5,000,000 = 0.45 or 45%.

If Sales Total $5,000,000, Fixed Costs Total $400,000, and Variable