Presented here is the income statement for Big Sky Incorporated for the month of February Sales...

 

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Presented here is the income statement for Big Sky Incorporated for the month of February Sales Cost of goods sold Gross profit Operating expenses Operating loss $ 61,500 51,300 $ 10,200 15,000 5 (4,000) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 17% Required: a. Rearrange the preceding income statement to the contribution margin format b. If sales increase by 15%, 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 Sales Cost of goods sold Gross profit Operating expenses Operating loss $ 61,500 51,300 $ 10,200 15,000 5 (4,000) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 17% Required: a. Rearrange the preceding income statement to the contribution margin format b. If sales increase by 15%, what will be the firm's operating income (or loss)? c. Calculate the amount of revenue required for Big Sky to break even

Answer rating: 100% (QA)

a Rearranged Income Statement in Contribution Margin Format Revenue Sales 161500 Variable Expenses C... View the full answer