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Hi, I need some help with my cost accounding homework please Exercise 4-26 Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of

Hi, I need some help with my cost accounding homework please

Exercise 4-26 Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue

The controller of Pelley Company prepared the following projected income statement:

Sales

$95,000

Total variable cost

68,400

Contribution margin

$26,600

Total fixed cost

14,000

Operating income

$12,600

Required:

  • 1.Calculate the contribution margin ratio.
  • 2.Calculate the variable cost ratio.
  • 3.Calculate the break-even sales revenue for Pelley.
  • 4.CONCEPTUAL CONNECTION How could Pelley increase projected operating income without increasing the total sales revenue?

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