Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Instructions Amount Descriptions Ratios and Revenue Contribution Margin Income Statement X % Instructions Ratios and Revenue 1. What is Arberg's variable cost ratio? What is its contribution margin Arberg Company's controller prepared the following budgeted income statement for the coming year ratio? Amount Descriptions x Variable cost ratio % Sales $420,000 Contribution margin ratio Refer to the list below for the exact wording of Variable cost 310.800 text items within your income statement Contribution margin $109,200 2. Suppose Arberg's actual revenues are $29,900 more than Fixed cost 62,660 Amount Descriptions budgeted By how much will operating income increase? Operating income $46,540 Operating income Operating loss Sales Total contribution margin 3(a) How much sales revenue must Arberg eam to break even? Fixed cost Variable cost $ $ Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Instructions Amount Descriptions Ratios and Revenue Contribution Margin Income Statement Contribution Margin Income Statement Margin of Safety 3(6) Prepare a contribution margin income statement to verify the accuracy of your answ Refer to the list of Amount Descriptions for the exact wording of text items within your income statement 4. What is Arberg's expected margin of safety? 5. What is Arberg's margin of safety if sales revenue is $377,000? Arberg Company Contribution Margin Income Statement For the Coming Year S 1 2 3 4 5 Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Instructions Amount Descriptions Ratios and Revenue Contribution Margin Income Statement X % Instructions Ratios and Revenue 1. What is Arberg's variable cost ratio? What is its contribution margin Arberg Company's controller prepared the following budgeted income statement for the coming year ratio? Amount Descriptions x Variable cost ratio % Sales $420,000 Contribution margin ratio Refer to the list below for the exact wording of Variable cost 310.800 text items within your income statement Contribution margin $109,200 2. Suppose Arberg's actual revenues are $29,900 more than Fixed cost 62,660 Amount Descriptions budgeted By how much will operating income increase? Operating income $46,540 Operating income Operating loss Sales Total contribution margin 3(a) How much sales revenue must Arberg eam to break even? Fixed cost Variable cost $ $ Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Instructions Amount Descriptions Ratios and Revenue Contribution Margin Income Statement Contribution Margin Income Statement Margin of Safety 3(6) Prepare a contribution margin income statement to verify the accuracy of your answ Refer to the list of Amount Descriptions for the exact wording of text items within your income statement 4. What is Arberg's expected margin of safety? 5. What is Arberg's margin of safety if sales revenue is $377,000? Arberg Company Contribution Margin Income Statement For the Coming Year S 1 2 3 4 5
