Show n here is an income statement in the traditional format for a firm with a sales

Question:

Show n here is an income statement in the traditional format for a firm with a sales volume of 8.000 units. Cost formulas also are show n:
Revenues.................................................................................................................... $32.000
Cost of goods sold ($6.000 - $2.1 10/unit)................................................................. 22.800
Gross profit...................................................................................................................$9.200
Operating expanses:
Selling (S1.200 + S0.10/unit)..................................................................................... 2.000
Administration (S4.COO t SQ.20/unit)...................................................................... 5.600
Operating income..................................................................................................... $1.600
Required:
a. Prepare an income statement in the format.
b. Calculate the per unit and the ratio.
c. Calculate the firm's operating income (or loss) if the volume changed from 8.0(K) units to
1. 12.000 units.
2. 4.000 units.
d. Refer to your answer to part a for total revenues of $32.000. Calculate the firm's operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues
1. Increase $12.000.
2. Decrease $7.000.
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...