Dry Cleaners has determined the following about its costs: Total variable expenses are $39,000, total fixed expenses are $27,000, and the sales revenue needed to break even is $ $45,000. Use the contribution margin income statement and the shortcut contribution margin approaches to determine Edger Dry Cleaners's current (1) sales revenue and (2) operating income.(Hint: First find the contribution margin ratio, and then prepare the contribution margin income statement.)

Use the contribution margin income statement and the shortcut contribution margin approaches to determine Edger Dry Cleaners's current (1) sales revenue and (2) operating income.Begin by computing the contribution margin ratio.

The contribution margin ratio is ___ %.

2. Prepare the contribution margin income statement at the calculated sales level.

Edger Dry Cleaners
Contribution Margin Income Statement
	Operating income (loss)