Step 1: Calculate the contribution margin ratio: The contribution margin ratio is the contribution margin price on a per-unit basis. (Selling Price - Variable Cost) Contribution Margin Ratio = Selling Price Note: The contribution margin ratio is calculated to one ($ 30 V - $15) Contribution Margin Ratio = 0.5 LA 30 Step 2: Calculate the sales revenue required to atta (Target Income + Fixed Cost) Sales Dollars = Contribution Margin Ratio ($ 40,000 V + $15,000) Sales Dollars = 0.5 = $ 110,000 Step 3: Create a contribution margin income staten previous work. Enter all amounts as positive numbers. Sales Total variable expense Total contribution margin Total fixed expense Operating income