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 $500,000Administrative $485,000 Manufacturing Overhead $150,000 $1,135,000Profit Dollars Percentage Calculate the Contribution MarginCalculate the Gross Margin Ratio Calculate Breakeven SalesCalculate Margin of Safety based on the 5% expected salesincrease.
| | Income Statement | Projected Income Statement |
| SalesRevenue | | | | $2,500,000 | | |
| | | | | | | |
| VariableCosts | | | | | | |
| Purchases | $750,000 | 0.3 | | | |
| Directlabor | $600,000 | 0.24 | $1,350,000 | | |
| | | | | $1,150,000 | | |
| FixedCosts | | | | | | |
| 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 salesincrease. | | | | | |
