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%