Presented here is the income statement for Big Sky Incorporated for the month of February $...
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Presented here is the income statement for Big Sky Incorporated for the month of February $ 61,000 51,500 $9,500 15,800 $ (6,300) Sales Cost of goods sold Gross profit Operating expenses. Operating loss 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 10%, what will be the firm's operating income (or loss)? c. Calculate the amount of revenue required for Big Sky to break even. Presented here is the income statement for Big Sky Incorporated for the month of February $ 61,000 51,500 $9,500 15,800 $ (6,300) Sales Cost of goods sold Gross profit Operating expenses. Operating loss 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 10%, what will be the firm's operating income (or loss)? c. Calculate the amount of revenue required for Big Sky to break even.
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Sure heres the income statement rearranged into the contribution margin format Amount Sales 6100000 ... View the full answer
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-1259103292
4th Canadian edition
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
Posted Date:
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