The following information is available.$direct materials 20 000direct labour 45 000direct expenses 6 000variable overheads 11 000fixed overheads 38 000sales 240 000What is the contribution to sales ratio?A 50% B 54.58% C 65.83% D 70.42%

To calculate the contribution to sales ratio, we need to determine the total contribution and divide it by the total sales.

Step 1: Calculate the total contribution. The total contribution is equal to the total sales minus the total variable costs. In this case, the total variable costs include direct materials, direct labor, direct expenses, and variable overheads.

Total variable costs = direct materials + direct labor + direct expenses + variable overheads Total variable costs = 20,000 + 45,000 + 6,000 + 11,000 Total variable costs = 82,000

Total contribution = Total sales - Total variable costs Total contribution = 240,000 - 82,000 Total contribution = 158,000

Step 2: Calculate the contribution to sales ratio. The contribution to sales ratio is the total contribution divided by the total sales, multiplied by 100.

Contribution to sales ratio = (Total contribution / Total sales) * 100 Contribution to sales ratio = (158,000 / 240,000) * 100 Contribution to sales ratio = 0.6583 * 100 Contribution to sales ratio = 65.83%

Therefore, the contribution to sales ratio is 65.83%. The correct answer is option C.