A manufacturer of cedar shingles has supplied the following data:

Bundles of cedar shakes produced and sold		360,000
Sales revenue	$	2,412,000
Variable manufacturing expense	$	1,170,000
Fixed manufacturing expense	$	714,000
Variable selling and administrative expense	$	414,000
Fixed selling and administrative expense	$	82,000
Net operating income	$	32,000

The company's contribution margin ratio is closest to:

• 72.6%

• 65.7%

• 34.3%

• 27.4%