Bryan company budgets sales of 1,800,000, fixed costs of 1,000,000 and variable costs of 1,080,000. what is the contribution margin ratio for Bryan Company

CMR= Contribution Margin/ Sales

Contibution Margin=Sales-Variable Costs
Answer= ((1800000-1080000)/1800000)*100%

40%

To calculate the contribution margin ratio, you need to subtract the variable costs from the sales and then divide it by the sales.

Contribution Margin = Sales - Variable Costs
Contribution Margin = $1,800,000 - $1,080,000
Contribution Margin = $720,000

Contribution Margin Ratio = Contribution Margin / Sales
Contribution Margin Ratio = $720,000 / $1,800,000
Contribution Margin Ratio = 0.4 or 40%

Therefore, the contribution margin ratio for Bryan Company is 40%.

To calculate the contribution margin ratio for Bryan Company, you need to know the formula:

Contribution Margin Ratio = (Sales - Variable Costs) / Sales

Given the information provided:

Sales = $1,800,000
Variable Costs = $1,080,000

Let's plug in these values into the formula:

Contribution Margin Ratio = ($1,800,000 - $1,080,000) / $1,800,000

Now, let's calculate it:

Contribution Margin Ratio = $720,000 / $1,800,000

Divide $720,000 by $1,800,000:

Contribution Margin Ratio = 0.4

The contribution margin ratio for Bryan Company is 0.4, or 40%.