The Contribution Margin Ratio represents:

The Contribution Margin Ratiorepresents:

The percentage of each sales dollar available to pay for fixed costs and contribute to income

Total variable costs divided by total fixed costs

Total fixed costs divided by the sum of total fixed costs plus total variable costs

The total amount of variable costs and fixed costs that need to be subtracted from total revenue to compute net income

The percentage of each sales dollar available to pay for variable costs and contribute to income

Total fixed costs divided by total revenue

The amount of revenue available to contribute to income