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Arberg Company's controller prepared the following budgeted income statement for the coming year: Required: What...

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Accounting

Arberg Company's controller prepared the following budgeted income statement for the coming year:
Required:
What is Arberg's variable cost ratio? What is its contribution margin ratio?
Suppose Arberg's actual revenues are $29,900 more than budgeted. By how much will operating income increase? Give the answer without
preparing a new income statement.
How much sales revenue must Arberg earn to break even? Prepare a contribution margin income statement to verify the accuracy of your
answer.
What is Arberg's expected margin of safety?
What is Arberg's margin of safety if sales revenue is $378,000?
Ratios and Revenue
What is Arberg's variable cost ratio? What is its contribution margin ratio?
Variable cost ratio
Contribution margin ratio
Suppose Arberg's actual revenues are $29,900 more than budgeted. By how much will operating income increase?
3(a) How much sales revenue must Arberg earn to break even?
Contribution Margin Income Statement
3(b) Prepare a contribution margin income statement to verify the accuracy of your answer. Refer to the list of Amount Descriptions for the exact wording of text items within your income statement.
Arberg Company
Contribution Margin Income Statement
For the Coming Year
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