Nolan dry cleaners has determined the following about its costs: total variable expenses are $40,000, total fixed expenses are $30,000, and the sales revenue needed to break even is $40,000. determine the company's current 1) sales revenue and 2) operating income. (hint: first, find the contribution margin ratio; then prepare the contribution margin income statement.)

Afirm wants to strengthen its financial position. which of the following actions would increase its current ratio? a. reduce the company's days' sales outstanding to the industry average and use the resulting cash savings to purchase plant and equipment. b. use cash to repurchase some of the company's own stock. c. borrow using short-term debt and use the proceeds to repay debt that has a maturity of more than one year. d. issue new stock, then use some of the proceeds to purchase additional inventory and hold the remainder as cash. e. use cash to increase inventory holdings.