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Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the following projected income statement: Sales $88,000 Total Variable cost
Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue
The controller of Ashton Company prepared the following projected income statement:
Sales | $88,000 |
Total Variable cost | 64,240 |
Contribution margin | $23,760 |
Total Fixed cost | 11,070 |
Operating income | $12,690 |
Required:
1. Calculate the contribution margin ratio. fill in the blank 1 %
2. Calculate the variable cost ratio. fill in the blank 2 %
3. Calculate the break-even sales revenue for Ashton. $fill in the blank 3
4. How could Ashton increase projected operating income without increasing the total sales revenue?
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