Arberg Companys controller prepared the following budgeted income statement for the coming year:

Sales	$423,000
Variable cost	329,940
Contribution margin	$93,060
Fixed cost	51,040
Operating income	$42,020

	Required:
1.	What is Arbergs variable cost ratio? What is its contribution margin ratio?
2.	Suppose Arbergs actual revenues are $30,100 more than budgeted. By how much will operating income increase? Give the answer without preparing a new income statement.
3.	How much sales revenue must Arberg earn to break even? Prepare a contribution margin income statement to verify the accuracy of your answer.
4.	What is Arbergs expected margin of safety?
5.	What is Arbergs margin of safety if sales revenue is $384,000?