Question: Please answer all I need help. Presented below is the income statement for Anderson Inc. for the month of May: Sales $1,280,000 Cost of goods

Please answer all I need help.

Presented below is the income statement for Anderson Inc. for the month of May:

Sales

$1,280,000

Cost of goods sold

1,180,000

Gross profit

$100,000

Operating expenses

64,000

Operating income

$36,000

The company's contribution margin ratio is 15% (variable expenses are 85% of sales). (a) Rearrange the above income statement to the contribution margin format remember, sales are 100% of sales, and sales x contribution margin ratio = contribution margin.

(b) Calculate the break-even point in sales revenue.

(c) Calculate the sales revenue needed to generate a target profit of $50,000.

(d) Calculate the margin of safety and margin of safety ratio.

When rearranging a traditional income statement into a contribution margin format, sales revenues _______________ while operating income ______________:

A.

Increases, decreases

B.

Decreases, increases

C.

Both decrease

D.

Both stay the same

Selling price per unit

$100

Variable expenses per unit

$40

Fixed expenses per month

$60,000

If the sales volume were to decrease 10%, from 4,000 units per month to 3,600 units per month, variable expenses per unit would:

A.

decrease 10%.

B.

stay the same.

C.

increase 10%.

D.

decrease 15%.

Selling price per unit

$100

Variable expenses per unit

$40

Fixed expenses per month

$60,000

If sales volume were to decrease 10%, from 4,000 units per month to 3,600 units per month, fixed expenses would:

A.

increase $6,000.

B.

decrease $6,000.

C.

decrease $24,000.

D.

stay the same.

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