Problem 12-24 (Algo) Prepare a contribution margin format income statement; calculate breakeven point LO 12-7, 12-8, 12-9, 12-11 Presented here is the income statement for Fairchild Company for March: Sales $ 77,500 41,000 Cost of goods sold Gross profit S 36,500 32,000 $ 4,500 Operating expenses Operating income Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 30%. Required: a. Rearrange the preceding income statement to the contribution margin format. b. Calculate operating income if sales volume increases by 8%. c. Calculate the amount of revenue required for Fairchild to break even. Complete this question by entering your answers in the tabs below. Required A Required B Required C Rearrange the preceding income statement to the contribution margin format. Cost of goods sold Fixed expenses Operating expenses Sales Variable expenses Required A Required B Required C Required A Calculate operating income if sales volume increases by 8%. Note: Do not round intermediate calculations. Operating income Operating loss < Required A Required B > Required C >
Problem 12-24 (Algo) Prepare a contribution margin format income statement; calculate breakeven point LO 12-7, 12-8, 12-9, 12-11 Presented here is the income statement for Fairchild Company for March: Sales $ 77,500 41,000 Cost of goods sold Gross profit S 36,500 32,000 $ 4,500 Operating expenses Operating income Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 30%. Required: a. Rearrange the preceding income statement to the contribution margin format. b. Calculate operating income if sales volume increases by 8%. c. Calculate the amount of revenue required for Fairchild to break even. Complete this question by entering your answers in the tabs below. Required A Required B Required C Rearrange the preceding income statement to the contribution margin format. Cost of goods sold Fixed expenses Operating expenses Sales Variable expenses Required A Required B Required C Required A Calculate operating income if sales volume increases by 8%. Note: Do not round intermediate calculations. Operating income Operating loss < Required A Required B > Required C >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Problem 12-24 (Algo) Prepare a contribution margin format income statement; calculate breakeven
point LO 12-7, 12-8, 12-9, 12-11
Presented here is the income statement for Fairchild Company for March:
Sales
$ 77,500
Cost of goods sold
Gross profit
41,000
S 36,500
32,000
$ 4,500
Operating expenses.
Operating income.
Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 30%.
Required:
a. Rearrange the preceding income statement to the contribution margin format.
b. Calculate operating income if sales volume increases by 8%.
c. Calculate the amount of revenue required for Fairchild to break even.
Complete this question by entering your answers in the tabs below.
Required A Required B Required C
Rearrange the preceding income statement to the contribution margin format.
Cost of goods sold
Fixed expenses
Operating expenses.
Sales
Variable expenses
Required A Required B Required C
Calculate operating income if sales volume increases by 8%.
Note: Do not round intermediate calculations.
Operating income
Operating loss
Required A
Required B
Break even
Required A
Required C
< Required A
Required B >
Calculate the amount of revenue required for Fairchild to break even.
< Required B
Required C >
Required C >
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