Answer:
0.343
Explanation:
Calculation for what The company's contribution margin ratio is closest to
First step is to calculate the Contribution margin using this formula
Contribution margin = Sales – Variable expenses
Let plug in the formula
Contribution margin= $2,412,000 – ($1,170,000 + $414,000)
Contribution margin= $2,412,000 – $1,584,000
Contribution margin= $828,000
Now let calculate the Contribution margin ratio using this formula
Contribution margin ratio = Contribution margin ÷ Sales
Let plug in the formula
Contribution margin ratio = $828,000 ÷ $2,412,000
Contribution margin ratio =0.343
Therefore The company's contribution margin ratio is closest to 0.343
