For a given level of sales,a low contribution margin ratio will produce less operating income than a high contribution margin ratio.

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Contribution margin ratio refers to the percentage of revenue that is left over after variable costs are deducted. This means that a higher contribution margin ratio indicates that more revenue is available to cover fixed costs and contribute towards operating income. Therefore, a low contribution margin ratio will produce less operating income than a high contribution margin ratio for the same level of sales.

For a Given Level of Sales,a Low Contribution Margin Ratio