If your hotels contribution margin ratio (CMR) is .80, which of the following is the correct interpretation about this ratio?

For every $1 of sales, my hotel can use $.20 to generate profits

For every $1 of sales, my hotel can use $.80 to pay on only fixed costs.

For every $1 of sales, my hotel can use $.80 to pay on fixed costs and variable costs.

For every $1 of sales, my hotel can use $.80 to pay on fixed costs or generate profits.