PLEASE ANSWER NUMBER 4B AND CONTRIBUTION MARGIN INCOME STATEMENT WITH THE CORRECT ANSWER FOR 4 B

Break-Even in Sales Revenue, Variable-Costing Ratio, Contribution Margin Ratio, Margin of Safety Nealon Company runs a driving range and golf shop. The budgeted income statement for the coming year is as follows. Required: 1. What is Nealon's variable cost ratio? Enter your answer as a decimal value rounded to two decimal places. What is the contribution margin ratio? Enter your answer as a decimal value rounded to two decimal places. (Express as a decimal-based amount rather than a whole percent.) 2. Suppose Nealon's actual revenues are $190,000 greater than budgeted. By how much will before-tax profits increase? Calculate the answer without preparing a new income statement. $ 3. How much sales revenue must Nealon earn in order to break even? Round your answer to the nearest dollar. $ What is the expected margin of safety? Round your answer to the nearest dollar. $ 4. How much sales revenue must Nealon generate to earn a before-tax profit of $50,000 ? Round your answer to the nearest dollar. $ How much sales revenue must Nealon generate to earn an after-tax profit of $35,000 ? Round your answer to the nearest dollar. $x V Cheok My Work 1. Variable cost ratio = Variable costs / Sales. Contribution margin ratio = Contribution margin / Sales. 2. Multiply actual revenues by contribution margin ratio. 3. Calculate break-even sales revenue (Total fixed costs / contribution margin ratio). Use this amount to determine the expected margin of safety. Fixed costs + After-tax operating income divided by Contribution margin ratio. Prepare a contribution margin income statement to verify the accuracy of your last answer. Round your answers to the nearest dollar. Feedback V Cheok My Work Remember a Contribution margin income statement calculates contribution-margin not gross profit