What is the contribution margin ratio in this question?

Current Attempt in Progress Lorge Corporation has collected the following information after its first year of sales. Sales were $1,700,000 on 85,000 units; selling expenses $250,000 (40% variable and 60% fixed); direct materials $720,800; direct labor $250,000; administrative expenses $270,000 (20% variable and 80% fixed); and manufacturing overhead $336,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. Your answer is correct. Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year. (Assume that fixed costs will remain the same in the projected year.) (1) Contribution margin for current year $ 340000 Contribution margin for projected year $ 374000 (2) Fixed costs for current year $ 466800 Your answer is partially correct. The company is considering a purchase of equipment that would reduce its direct labor costs by $100,000 and would change its manufacturing overhead costs to 30% variable and 70% fixed (assume total manufacturing overhead cost is $336,000, as above). It is also considering switching to a pure commission basis for its sales staff. This would change selling expenses to 90% variable and 10% fixed (assume total selling expense is $250,000, as above). Compute (1) the contribution margin and (2) the contribution margin ratio, and recompute (3) the break-even point in sales dollars. (Round contribution margin ratio to 4 decimal places, e.g. 0.2527 and all other answers to O decimal places, e.g. 2,520. Use the current year numbers for calculations.) 1. Contribution margin $ 449400 2. Contribution margin ratio 26.4353 3. Break-even point $ 1801379