Please assist me in resolving the attached Homwework Question..

Notes:

(Note that there appears to be a typo inC1; the original number of units that we are changing should be 18,000 instead of 15,000.)

Key number:12th edition--C1)Operating income = $18,800

1 Prepare a contribution margin format income statement; answer what-i questions Shown here is an income statement in the traditional format for a fir with a sales volume of 18,000 units: Revenues ............................................................... $108,000 Cost of goods sold ($10,000 + $2.80/unit) .................................. 60,400 Gross profit .............................................................. $ 47,600 Operating expenses: Selling ($2,200 + $1 .OO/unit) ............................................ 20,200 Administration ($5,000 + $0.40/unit) ..................................... 12,200 Operating income ........................................................ $ 15,200 Required: 3. 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 15,000 units to 1. 20,000 units. 2. 10,000 units. Problem 12.22 Lo 1, s, 9, 12 . Refer to your answer to part a when total revenues were 108,000. Calculate the firm's operating income (or loss) if unit selling price and variable expense per unit do not change and total revenues 1. Increase by $15,000. 2. Decrease by $10,000