Hammond Company runs a driving range and golf shop. The budgeted income statement for the coming...

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Hammond Company runs a driving range and golf shop. The budgeted income statement for the coming year is as follows. Sales Less: Variable expenses $1,240,000 706,800 Contribution margin $533,200 Less: Fixed expenses 425,000 Income before taxes $108,200 Less: Income taxes 43,280 $64,920 Net income Required: 1. What is Hammond's variable cost ratio? Enter your answer as a decimal value rounded to two decimal places. What is the contribution margin ratio? Enter your answer as a decimal value rounded to two decimal places. (Express as a decimal-based amount rather than a whole percent.) 2. Suppose Hammond's actual revenues are $200,000 greater than budgeted. By how much will before-tax profits increase? Calculate the answer without preparing a new income statement. Hammond Company runs a driving range and golf shop. The budgeted income statement for the coming year is as follows. Sales Less: Variable expenses $1,240,000 706,800 Contribution margin $533,200 Less: Fixed expenses 425,000 Income before taxes $108,200 Less: Income taxes 43,280 $64,920 Net income Required: 1. What is Hammond's variable cost ratio? Enter your answer as a decimal value rounded to two decimal places. What is the contribution margin ratio? Enter your answer as a decimal value rounded to two decimal places. (Express as a decimal-based amount rather than a whole percent.) 2. Suppose Hammond's actual revenues are $200,000 greater than budgeted. By how much will before-tax profits increase? Calculate the answer without preparing a new income statement.