The Cutting Edge sells ice skates. Total sales are $845,000, total variable expenses are $245,050 and total fixed expenses are $302,000. The variable expense ratio is 29%.
Generally, A company's variable expenditures are expressed as a percentage of its total sales in the variable expense ratio.
To get the variable expenditure ratio for a firm, just take the entire variable costs for the company and divide that number by the company's total net sales. Simply multiplying the value by 100 will allow you to describe it as a percentage.
To get the variable expenditure ratio for a firm, just take the entire variable costs for the company and divide that number by the company's total net sales. Simply multiplying the value by 100 will allow you to describe it as a percentage.
Therefore
The variable expense ratio = $245,050/ 845,000
The variable expense ratio = 0.29
Read more about the variable expense ratio
https://brainly.com/question/28340629
#SPJ1
