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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 66,000
Contribution margin $22,000
Total Fixed cost 9,500
Operating income $12,500

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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