12-21 (Algo) Prepare a contribution margin format income statement; answer what-if questions LO 7, 8, 9 Shown here is an income statement in the traditional format for a firm with a sales volume of 7,600 units. Cost formulas also are shown: Revenues Cost of goods sold ($5,900 + $2.10/unit) Gross profit Operating expenses: Selling ($1,180 + $0.10/unit) Administration ($3,600 + $0.25/unit) Operating income $34,700 21,860 $12,840 1,940 5,500 $ 5,400 Required: a. Prepare an income statement in the contribution margin format. b. Calculate the contribution margin per unit and the contribution margin ratio. c. Calculate the firm's operating Income (or loss) If the volume changed from 7,600 units to 1. 11,400 units. 2. 3,800 units. d. Refer to your answer to part a for total revenues of $34,700. 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 by $12,500. 2. Decrease by $3,000. Required A Required B Required C1 Required C2 Required D1 Required D2 Prepare an income statement in the contribution margin format. Contribution Margin Income Statement Revenue Variable expenses: Cost of goods sold $ 15,960 Selling expenses 760 Administrative expenses Total variable expenses Contribution margin 1,900 Fixed expenses: Cost of goods sold 5,900 Selling expenses 1,180 Administrative expenses 3,600 Total fixed expenses Operating income $ 34,700 18,620 16,080 10,680 S 5,400 Required: a. Prepare an Income statement in the contribution margin format. b. Calculate the contribution margin per unit and the contribution margin ratio. c. Calculate the firm's operating Income (or loss) If the volume changed from 7,600 units to 1. 11,400 units. 2. 3,800 units. d. Refer to your answer to part a for total revenues of $34,700. 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 by $12,500. 2. Decrease by $3,000. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C1 Required C2 Required D1 Required D2 Calculate the firm's operating income (or loss) if the volume changed from 7,600 units to 11,400 units. (Do not round intermediate calculations.) Operating income < Required B Required C2 > Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C1 Required C2 Required D1 Required D2 Calculate the firm's operating income (or loss) if the volume changed from 7,600 units to 3,800 units. Refer to your answer to part a for total revenues of $34,700. (Do not round intermediate calculations.) Operating loss < Required C1 Required D1 > Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C1 Required C2 Required D1 Required D2 Refer to your answer to part a for total revenues of $34,700. Calculate the firm's operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues, calculate the firm's operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues increase by $12,500. (Round intermediate calculations to 2 decimal places.) Operating income < Required C2 Required D2 > Show less Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C1 Required C2 Required D1 Required D2 Refer to your answer to part a for total revenues of $34,700. Calculate the firm's operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues, calculate the firm's operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues decrease by $3,000. (Round intermediate calculations to 2 decimal places.) Operating income < Required D1 Required D2 > Show less