Contribution margin ratio

a$.$ Coastal Company budgets sales of $$950,000,$ fixed costs of $$55,600,$ and variable costs of $$247,000.$ What is the contribution margin ratio for Coastal Company?

$\%$

b$.$ If the contribution margin ratio for Bushner Company is $42\%,$ sales were $$540,000,$ and fixed costs were $$170,100,$ what was the operating income?

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$3.$ Sales minus variable costs equals contribution margin. Contribution margin divided by sales equals contribution margin ratio.

b$.$ Sales times contribution margin ratio equals contribution margin. Contribution margin minus fixed costs equals income from operations.