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Income Statement Projected Income Statement Sales Revenue $2,500,000 Variable Costs Purchases $750,000 0.3 Direct labor $600,000 0.24 $1,350,000 $1,150,000 Fixed Costs Selling $500,000 Administrative $485,000 Manufacturing Overhead $150,000 $1,135,000 Profit Dollars Percentage Calculate the Contribution Margin Calculate the Gross Margin Ratio Calculate Breakeven Sales Calculate Margin of Safety based on the 5% expected sales increase.
| | | Income Statement | Projected Income Statement |
| Sales Revenue | | | | $2,500,000 | | |
| | | | | | | | |
| Variable Costs | | | | | | |
| | Purchases | $750,000 | 0.3 | | | |
| | Direct labor | $600,000 | 0.24 | $1,350,000 | | |
| | | | | | $1,150,000 | | |
| Fixed Costs | | | | | | |
| | Selling | | $500,000 | | | | |
| | Administrative | $485,000 | | | | |
| | Manufacturing Overhead | $150,000 | | $1,135,000 | | |
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| Profit | | | | | | | |
| | | | | | | | |
| | | | Dollars | Percentage | | | |
| Calculate the Contribution Margin | | | | | |
| | | | | | | | |
| Calculate the Gross Margin Ratio | | | | | |
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| | | | | | | | |
| Calculate Breakeven Sales | | | | | |
| Calculate Margin of Safety based on the 5% expected sales increase. | | | | | |
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