The contribution margin ratio is computed as a. sales divided by contribution margin b. contribution margin divided by variable cost of sales c. contribution margin divided by sales d. contribution margin divided by cost of sales

C

Explanation:

In this question, we are asked to select out of the options, the one that gives the correct mathematical formula for the contribution margin ratio.

By definition, what we mean by the contribution margin ratio refers to a company's sales less the variable expenses which is expressed as a percentage.

This means that to calculate the contribution margin ratio, we need to subtract a company's variable expenses from a company's sales, then divide by the company's sales and multiply by 100% to give a percentage