@Ted Yates , The ratio is based on the price, so this - "but am I paying more because I have larger VMs that are not being covered by the reservation because that capacity is being eaten up by the smaller ones" is not correct. See this page for how reservation applies: Virtual machine size flexibility -Azure Reserved VM Instances - Azure Virtual Machines | Microsoft Learn
There is no way to apply to large size first and then small sizes.
If you have any questions/concerns regarding reservation costs and how it works, you can reach out to Azure billing support team by raising a support request which is provided free of cost.
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