A $45\%$ contribution margin ratio means that:

Multiple Choice

the company should contribute $45\%$ of its operating income to qualified charities for maximum tax benefits.

$55\%$ of the company's revenue is consumed by fixed and variable costs.

the company's revenue has increased by $45\%$ during the current accounting period.

$45\%$ of the company's revenue is available to cover fixed costs and to contribute toward operating income.