Exercise 7-42 Sales Revenue Approach, Variable Cost Ratio, Contribution Margin OBJECT Ratio Arberg Company's controller prepared the following budgeted income statement for the coming year: Sales $415,000 Colaborada bile Total variable cost 302,950 D Contribution margin $112.050 lobom sadarbs no Total fixed cost 64,800 om Operating income $ 47,250 Required: 1. What is Arberg's variable cost ratio? What is its contribution margin ratio? 2. Suppose Arberg's actual revenues are $30,000 more than budgeted. By how much will operating income increase? Give the answer without preparing a new income statement. 3. How much sales revenue must Arberg earn to break even? Prepare a contribution margin income statement to verify the accuracy of your answer. 4. What is Arberg's expected margin of safety? 5. What is Arberg's margin of safety if sales revenue is $380,000