If sales are $799,000, variable costs are 75% of sales, and operating income is $222,000, what is the contribution margin ratio?

25%

Explanation:

The contribution margin ratio is shown below:

Contribution margin ratio = (Contribution margin) : (Sales volume) * 100

where,

Contribution margin = Sales revenue - variable cost

The variable cost is = $799,000 * 75% = $599,250

And, the sales revenue is $799,000

So, the contribution margin is

= $799,000 - $599,250

= $199,750

And, Contribution margin ratio = (Contribution margin) : (Sales revenue) * 100

= $199,750 : $799,000

= 25%