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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 | 69,520 |
Contribution margin | $18,480 |
Total Fixed cost | 9,240 |
Operating income | $9,240 |
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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