Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the following projected income statement: Sales $88,000 Total Variable cost 61,600 Contribution margin $26,400 Total Fixed cost 10,500 Operating income $15,900 Required: 1.  Calculate the contribution margin ratio. % 2.  Calculate the variable cost ratio. % 3.  Calculate the break-even sales revenue for Ashton.$ 4. How could Ashton increase projected operating income without increasing the total sales revenue?

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A:

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