Brief Exercise 7-15 Variable Cost Ratio, Contribution Margin Ratio Head-First Company plans to sell 5,000 bicycle helmets ar $75 each in the coming yea variable cost is $45 (includes direct materials, direct labor, variable factory over able selling expense). Fixed factory overhead is $20,000, and fixed selling and administ expense is $29,500. le 7.3 nit head, and vari- Required: 1. Calculate the variable cost ratio. 2. Calculate the contribution margin ratio 3. Prepare a contribution margin income statement based on the budgeted figures for next year. In a column next to the income statement, show the percentages based on sales for sales, total variable cost, and total contribution margin