Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Instructions Amount Descriptions Ratios and Revenue Contribution Margin Income Statement Instructions Arberg Company's controller prepared the following budgeted income statement for the coming year: Sales $420,000 Variable cost 310,800 Contribution margin $109,200 Fixed cost 62,660 Operating income $46,540 Required: 1. What is Arberg's variable cost ratio? What is its contribution margin ratio? 2. Suppose Arberg's actual revenues are $29,900 more than budgeted. By how much will operating income increase? 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 if sales revenue is $377,000