Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Andreston Company prepared the following projected income statement: 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?

Question

Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Andreston Company prepared the following projected income statement:

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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