2A company sells many different products and have prepared the following projected income statement, prepared in contribution margin format: Sales $ 93,000 Total variable cost 70,680 Contribution margin $ 22,320 Total fixed cost 12,000 Operating income $ 10,320

a) Calculate the variable cost ratio

b) Calculate the contribution margin ratio

c) Calculate the break-even sales in $$.

d) Calculate the amount of sales needed to achieve a target profit of $6,000.

e) ASSUME that the company wishes to make the target profit of $6,000, but is not in a position to increase sales. Further, all fixed costs are committed and cannot be changed. What is the HIGHEST that their variable cost ratio can be in order to achieve their profit target?