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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 $22,000 Contribution margin Total Fixed cost 10,500 Operating income $11,500 Required: 1. Calculate the contribution margin ratio. 2. Calculate the variable cost ratio. 3. Calculate the break-even sales revenue for Ashton. 4. How could Ashton increase projected operating income without increasing the total sales revenue
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