Work backward to find missing information (Learning Objectives 1, 2)

Berg Drycleaners has determined the following about their 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 margin 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.)