Young Company budgets sales of $970,000, fixed costs of $30,600, and variable costs of $135,800. What is the contribution margin ratio for Young Company

contribution margin ratio= 0.86

Explanation:

Giving the following information:

Young Company budgets sales of $970,000

Variable costs of $135,800.

To calculate the contribution margin ratio, we need to use the following formula:

contribution margin ratio= contribution margin / sales

contribution margin ratio= (970,000 - 135,800) / 970,000

contribution margin ratio= 0.86

ROI (return on investment) is a ratio the measures the amount of return for your investment. The calculation is (net return) / (net investment). In this case net return is the dividends and the cost is the price of the stock. So... (.75)/(16.49)= 4.5% return on investment.