Berg Drycleaners has determined the following about its costs Total variable expenses are $40,000, total fixed expenses are $30,000, and the sales revenue needed to break even is $40,000 Use the contribution margin income statement and the shortcut contribution mar gin approaches to determine Berg Drycleaners current (1) Sales revenue and (2) Operating income (Hint First find the contribution margin ratio, then prepare the contribution margin income statement )

Question: Berg Drycleaners has determined the following about its costs: Total variable expenses are $40,000, total fixed expenses are $30,000, and the sales revenue needed to

Berg Drycleaners has determined the following about its costs: Total variable expenses are $40,000, total fixed expenses are $30,000, and the sales revenue needed to break-even is $40,000. Use the income statement and the shortcut contribution mar- gin approaches to determine Berg Drycleaners’ current
(1) Sales revenue and
(2) Operating income. (Hint: First find the ratio, then prepare the income statement.)

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