$61,000 52,600 $ 8,400 Sales Cost of goods sold Gross profit Operating expenses 13,500 Operating loss $(5,100) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 19%. Required: a. Rearrange the preceding income statement to the contribution margin format. b. If sales increase by 15%, what will be the firm's operating income (or loss)? c. Calculate the amount of revenue required for Big Shot to break even.
$61,000 52,600 $ 8,400 Sales Cost of goods sold Gross profit Operating expenses 13,500 Operating loss $(5,100) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 19%. Required: a. Rearrange the preceding income statement to the contribution margin format. b. If sales increase by 15%, what will be the firm's operating income (or loss)? c. Calculate the amount of revenue required for Big Shot to break even.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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need help please
Transcribed Image Text:$61,000
52,600
$ 8,400
Sales
Cost of goods sold
Gross profit
Operating expenses
13,500
Operating loss
$(5,100)
Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 19%.
Required:
a. Rearrange the preceding income statement to the contribution margin format.
b. If sales increase by 15%, what will be the firm's operating income (or loss)?
c. Calculate the amount of revenue required for Big Shot to break even.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Calculate the amount of revenue required for Big Shot to break even.
Break even
Pequired B
Reguired C
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