Question: Prepare a contribution margin format income statement; calculate break-even point Presented here is the income statement for Big Surf, Inc., for the month of June:

Prepare a contribution margin format income statement; calculate break-even point Presented here is the income statement for Big Surf, Inc., for the month of June: Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $130,000 Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109,000 Gross pro? t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21 ,000 Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,500 Operating loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(3,500) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 25%. Required: a. Rearrange the preceding income statement to the contribution margin format. b. If sales increase by 10%, what will be the ?rm

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