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%?