Question: Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Andreston Company prepared the following projected income statement:
Sales $93,000
Total variable cost 70,680
Contribution margin $22,320
Total fixed cost 12,000
Operating income $10,320
Required: 1. Calculate the contribution margin ratio.
2. Calculate the variable cost ratio.
3. Calculate the break-even sales revenue for Andreston.
4. Conceptual Connection: How could Andreston increase projected operating income without increasing the total sales revenue?