Berg Dry Cleaners has determined the following about its costs: Total variable expenses are $45,000, total fixed expenses are $27,500, and the sales revenue needed to break even is $50,000. Determine the company's current 1) sales revenue and 2) operating income. (Hint: First, find the contribution margin ratio; then prepare the contribution margin income statement.) Use the contribution margin income statement and the shortcut contribution margin approaches to determine Berg's current (1) sales revenue and (2) operating income. Begin by computing the contribution margin ratio. (Enter the result as a whole number.) The contribution margin ratio is Prepare the contribution margin income statement at the calculated sales level. Berg Drycleaners Contribution Margin Income Statement Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss) COL 55 %.

The oontribution margin ritio is Prepare the contribution margin inoome statement at the calculoted sales leve