Furyk Company runs a driving range and golf shop. The budgeted income statement for the coming year is as follows.

Required:
1. What is Furyk’s variable cost ratio? Its contribution margin ratio?
2. Suppose Furyk’s actual revenues are $150,000 greater than budgeted. By how much will before-tax profits increase? Give the answer without preparing a new income statement.
3. How much sales revenue must Furyk earn in order to break even? What is the expected margin of safety? (Round your answers to the nearest dollar. )
4. How much sales revenue must Furyk generate to earn a before-tax profit of $120,000? An after-tax profit of $120,000? (Round your answers to the nearest dollar.) Prepare a contribution margin income statement to verify the accuracy of your last answer.LO1

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Sales Less: Variable expenses Contribution margin Less: Fixed expenses Income before taxes Less: Income taxes Net income $800,000 344,000 $456,000 310,000 $146,000 51,100 $ 94,900