Sure, let's solve these problems step-by-step.
1. Contribution Margin Ratio:
To find the contribution margin ratio, we first need to determine the contribution margin itself, which is calculated as follows:
[tex]\[
\text{Contribution Margin} = \text{Sales} - \text{Variable Expenses}
\][/tex]
Plugging in the values provided:
[tex]\[
\text{Contribution Margin} = \$156,000 - \$118,560 = \$37,440
\][/tex]
Next, the contribution margin ratio is calculated as the contribution margin divided by sales, multiplied by 100 to express it as a percentage:
[tex]\[
\text{Contribution Margin Ratio} = \left( \frac{\text{Contribution Margin}}{\text{Sales}} \right) \times 100
\][/tex]
Substituting the values:
[tex]\[
\text{Contribution Margin Ratio} = \left( \frac{\$37,440}{\$156,000} \right) \times 100 \approx 24.0\%
\][/tex]
2. Variable Expense Ratio:
The variable expense ratio is found by dividing the variable expenses by the sales, and then multiplying by 100 to express it as a percentage:
[tex]\[
\text{Variable Expense Ratio} = \left( \frac{\text{Variable Expenses}}{\text{Sales}} \right) \times 100
\][/tex]
Using the given values:
[tex]\[
\text{Variable Expense Ratio} = \left( \frac{\$118,560}{\$156,000} \right) \times 100 \approx 76.0\%
\][/tex]
So, summarizing the results, we have:
\begin{tabular}{|l|l|l|}
\hline 1. Contribution margin ratio & 24.0 & [tex]$\%$[/tex] \\
\hline 2 Variable expense ratio & 76.0 & [tex]$\%$[/tex] \\
\hline
\end{tabular}
