Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger

Exercise 41

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