Apple Inc. has the following budgeted information for the upcoming quarter:

• Sales Revenue: $50,000,000
• Variable Costs: $30,000,000
• Fixed Costs: $10,000,000
• Tax Rate: 25%

Requirements:

1. Prepare a Contribution Margin Income Statement.
2. Calculate the Contribution Margin Ratio.
3. Determine the Break-Even Point in dollars.
4. Analyze the effect of a 5% increase in sales revenue on net income.
5. Discuss the significance of the Contribution Margin Ratio in decision-making.