Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales Cost of sales: Direct Material Direct labor Variable Overhead Fixed Overhead Gross Profit Selling and General & Admin. Exp. Variable Fixed Operating Income $3,500,000 $500,000 250,000 275,000 600,000 1,625,000 $ 1,875,000 750,000 250,000 The contribution margin ratio for the current year is: 53.6%. 49.3%. 46.4% 25% 1,000,000 $875,000