1. Shown below is an income statement in the traditional formatfor Ellie Inc, which has a contribution margin ratio of 25%.Sales ......Cost of goods sold...Gross profit......Operating expenses:Selling...Administrative....Operating income$100,000(70,000)$ 30,000(5,000)(10,000)$ 15,000Prepare an income statement in the contribution marginformat.b. Calculate the sales per unit, variable expense per unit, andcontribution margin per unit if 10,000 units were producedand sold.c. Calculate the cost formula (Y=a+bX).d. Calculate the firm's break even point in units.

The contribution margin is calculated as the difference between the sales and variable costs. The…

Answered: 1. Shown below is an income statement…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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