Income Statement Projected Income Statement Sales Revenue $2,500,000 Variable Costs Purchases $750,000 0.3 Direct labor $600,000 0.24 $1,350,000 $1,150,000 Fixed Costs Selling $500,000 Administrative $485,000 Manufacturing Overhead $150,000 $1,135,000 Profit Dollars Percentage Calculate the Contribution Margin Calculate the Gross Margin Ratio Calculate Breakeven Sales Calculate Margin of Safety based on the 5% expected sales increase.

		Income Statement				Projected Income Statement
Sales Revenue					$2,500,000
Variable Costs
	Purchases		$750,000	0.3
	Direct labor		$600,000	0.24	$1,350,000
					$1,150,000
Fixed Costs
	Selling		$500,000
	Administrative		$485,000
	Manufacturing Overhead		$150,000		$1,135,000
Profit
			Dollars	Percentage
Calculate the Contribution Margin
Calculate the Gross Margin Ratio
Calculate Breakeven Sales
Calculate Margin of Safety based on the 5% expected sales increase.