Presented here is the income statement for Fairchild Company for March: Sales Cost of goods sold...

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Presented here is the income statement for Fairchild Company for March: Sales Cost of goods sold Gross profit Operating expenses Operating income $ 77,500 40,000 $ 37,500 31,500 $ 6,000 Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 28%. Required: a. Rearrange the preceding income statement to the contribution margin format. b. Calculate operating income if sales volume increases by 9%. c. Calculate the amount of revenue required for Fairchild to break even. Presented here is the income statement for Fairchild Company for March: Sales Cost of goods sold Gross profit Operating expenses Operating income $ 77,500 40,000 $ 37,500 31,500 $ 6,000 Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 28%. Required: a. Rearrange the preceding income statement to the contribution margin format. b. Calculate operating income if sales volume increases by 9%. c. Calculate the amount of revenue required for Fairchild to break even.

Answer rating: 100% (QA)

a Rearranging the income statement to the contribution margin format Sales 775... View the full answer