Arberg Company's controller prepared the following budgeted income statement for the coming year: Sales $420,000 Variable cost 310,800 Contribution margin $109,200 Fixed cost 62,660 Operating income $46,540 Required: 1. What is Arberg's variable cost ratio? What is its contribution margin ratio? 2. Suppose Arberg's actual revenues are $29,900 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 Arberg's expected margin of safety? 5. What is Arberg's margin of safety if sales revenue is $377,000