OBJECTIVE 1 Brief Exercise 7-26 Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sll 3,500 pairs of shoes at $60 cach in the coming year. Unit vi Example 7.3 able cost is $21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Fixed factory overhead is $30,000 and fixed selling and administrative expense is $48,000. Required: 1. Calculate the variable cost ratio. 2. Calculate the contribution margin ratio. 3. Prepare a contribution margin income statement based on the budgeted figures for next year. In a column next to the income statement, show the percentages based on sales for sales, total variable cost, and total contribution margin