What is the variable cost ratio of 100 dollars of output

Variable cost ratio is variable cost as a percentage of sales revenue. The formula for calculating the variable cost ratio is: variable cost ratio = variable cost / sales revenue * 100%. For example, if sales revenue is $1 million and variable cost is $750,000, then variable cost ratio = variable cost / sales revenue * 100% = $750,000 / $1 million * 100% = 75%.