(Answered) Question contribution margin ratio variable cost ratio

Accounting

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?

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