Instructions Arberg Company's controller prepared the following budgeted income statement for the coming year: Sales $418,000 Variable cost 284,240 Contribution margin $133.760 Fixed cost 79,360 Operating income 54,400 Required: 1. What is Arberg's variable cost ratlo? What is its contribution margin ratio? 2. Suppose Arberg's actual revenues are $30,000 more than budgeted. By how much will operating income increaso? Give the answer without preparing a new income statement 3. How much sales revenue must Arberg earn to break even? Prepare a contribution margin income statement to verify the accuracy of your answer 4. What is Arberg's expected margin of safety? 5. What is Arberg's margin of safety of sales revenue is $377,000? Amount Descriptions Refer to the list below for the exact wording of text items within your incime statement. Amount Descriptions Operating income Operating loss Sales Total contribution margin Fixed cost Variable cost 1. What is Arberg's variable cost ratio? What is its contribution margin ratio? Variable cost ratio Contribution margin ratio 2. Suppose Arberg's actual revenues are $30,000 more than budgeted. By how much will operating income increase? $ 3(a) How much sales revenue must Arberg earn to break even? $ Contribution Margin Income Statement 3(b) Prepare a contribution margin income statement lo verily the accuracy of your answer. Refer to the list of Amount Desa income statement Arberg Company Contribution Margin Income Statement For the Coming Year 1 2 3 4 5