Answer:
25%
Explanation:
The contribution margin ratio is shown below:
Contribution margin ratio = (Contribution margin) ÷ (Sales volume) × 100
where,
Contribution margin = Sales revenue - variable cost
The variable cost is = $799,000 × 75% = $599,250
And, the sales revenue is $799,000
So, the contribution margin is
= $799,000 - $599,250
= $199,750
And, Contribution margin ratio = (Contribution margin) ÷ (Sales revenue) × 100
= $199,750 ÷ $799,000
= 25%
