Answer:
42.86%
Explanation:
The contribution margin ratio shows a relationship between the contribution margin and the sales price which is presented below:
Contribution margin ratio = (Contribution margin per unit) ÷ (selling price per unit) × 100
= ($75) ÷ ($175) × 100
= 42.86%
We simply divide the contribution margin per unit by the selling price so that the ratio can come
