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

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

Sales	$65,000.00
Cost of Goods Sold	$56,000.00
Gross Profit	$9,000.00
Operating Expense	$14,000.00
Operating Loss	-$5,000.00

Based on an analysis of the cost behavior patterns, it has been determined that the company's contribution margin ratio is 20%

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, Inc., to break even.

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