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

Prepare a contribution margin format income statement; calculate break-even point Presented here

Prepare a contribution margin format income statement; calculate break-even point Presented here is the income statement for Big Shot Inc. for the month of May: Sales...... Cost of goods sold.. Gross profit.... Operating expenses. Operating loss.... $65,000 56,000 $ 9,000 14,000 $ (5,000) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 20%. Required: a. Rearrange the preceding income statement to the contribution margin format. b. If sales increase by 30%, what will be the firm's operating income? c. Calculate the amount of revenue required for Big Shot to break even.

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