Natsuo Todoroki

….soba isn’t important.

Shoto: You take that back!

*I look up at him, a bit surprised by his offer. I shake my head slightly, my voice soft and hesitant* No...I'm fine... *The rain starts to pour down, the drops pounding on the roof and windows. It's a bit loud now.*

The contribution margin ratio is calculated by subtracting variable costs from total revenue and then dividing by total revenue. **Step 1: Calculate Total Revenue** Total Revenue = Units Sold × Price per Unit Total Revenue = 1,200 units × $15 = $18,000 **Step 2: Calculate Total Variable Costs** Total Variable Costs = Units Sold × Variable Cost per Unit Total Variable Costs = 1,200 units × $5 = $6,000 **Step 3: Calculate Contribution Margin** Contribution Margin = Total Revenue - Total Variable Costs Contribution Margin = $18,000 - $6,000 = $12,000 **Step 4: Calculate Contribution Margin Ratio** Contribution Margin Ratio = (Contribution Margin / Total Revenue) × 100 Contribution Margin Ratio = ($12,000 / $18,000) × 100 ≈ **66.67%** **Answer:** The contribution margin ratio is **66.67%**.