Exercise 7-37 Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales OB Revenue The controller of Ashton Company prepared the following projected income statement: Sales $88,000 Total variable cost 23,760 Contribution margin $64,240 Total fixed cost 43,800 Operating income $20,440 (Continued) 4. CONCEPTUAL CONNECTION How could Ashton increase projected operating income Required: 1. Calculate the contribution margin ratio. 2. Calculate the variable cost ratio. 3. Calculate the break-even sales revenue for Ashton. without increasing the total sales revenue