Problem 12.24 Prepare a contribution margin format income statement; calculate breakeven LO 7, 8, 9, 11 point Presented here is the income statement for Fairchild Co. for March: Sales ......... Cost of goods sold.... Gross profit. Operating expenses.... Operating income.... $100,000 54,000 C. $ 46,000 37,000 $ 9,000 Based on an analysis of cost behavior patterns, it has been determined that the com- pany's contribution margin ratio is 30%. Required: b. a. Rearrange the preceding income statement to the contribution margin format. Calculate operating income if sales volume increases by 10%. (Note: Do not con- struct an income statement to get your answer.) Calculate the amount of revenue required for Fairchild to break even.

Problem 12.24 Prepare a contribution margin format income statement; calculate breakeven LO 7, 8, 9, 11 point Presented here is the income statement for Fairchild Co. for March: Sales ......... Cost of goods sold.... Gross profit. Operating expenses.... Operating income.... $100,000 54,000 C. $ 46,000 37,000 $ 9,000 Based on an analysis of cost behavior patterns, it has been determined that the com- pany's contribution margin ratio is 30%. Required: b. a. Rearrange the preceding income statement to the contribution margin format. Calculate operating income if sales volume increases by 10%. (Note: Do not con- struct an income statement to get your answer.) Calculate the amount of revenue required for Fairchild to break even.

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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Hh1. Account
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am. 106.
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