## Answers

We will use the Contribution margin ratio formula as (Sales- Variable cost)/ Sales

1. Bramble Company

Sales= 490000

Variable Cost= 294000

Contribution Margin Ratio= (490000-294000)/490000 = 0.40

2. Vaughn Company

Sales= 490000

Variable Cost= 245000

Contribution Margin Ratio= (490000-245000)/490000= 0.50

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