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Rubbermaid produces and sells plastic storage sheds. Its current sales are $500,000. The company's accountant provided the following cost information: Manufacturing costs $ 100,000 + 40 % of sales Selling costs + $ 30,000 10 % of sales Administrative costs $ 45,000 + 10 % of sales Required: 1) Compute the product's contribution margin ratio. 2) Compute the company's current net income. 3) Compute the product's break-even point in dollars. 4) Compute the amount of revenue necessary to earn $60,000 in profit. 5) Compute the company's current margin of safety ratio. 6) Should the company accept a proposal that increases sales by 20% and total fixed costs by 25%