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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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