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Habitat Help Company provides cleaning services to commercial and residential customers. The commercial business segment provided services to 210 customers and the residential business segment provided services to 665 customers.    Commercial     Residential             Total Service Revenue ​ $94 comma 000        ​ $120 comma 000       ​ $214 comma 000 Variable Costs 22 comma 000              48 comma 000            70 comma 000 Fixed Costs 41 comma 000             53 comma 000            94 comma 000 Operating Income ​$31 comma 000          ​ $19 comma 000         ​ $50 comma 000 What is the contribution margin ratio for Habitat Help​ Company? ​ (Round answer to two decimal​ places.) A. 76.64​% B. 56.07​% C. 23.36​% D. 67.29​%

Respuesta :

Answer:

67.29%

Explanation:

The computation of the contribution margin ratio is shown below:

Contribution margin ratio = (Contribution margin) ÷ (Sales) × 100  

where,

Contribution margin equals to

= Total sales - variable cost

= $214,000 - $70,000

= $144,000

So, the Contribution margin ratio is

= ($144,000) ÷ ($214,000) × 100

= 67.29%