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, $ 62,000 53,900 $ 8,100 14,100 $ (6,000) 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 18%. 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, $ 62,000 53,900 $ 8,100 14,100 $ (6,000) 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 18%. 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 Rearranging the income statement to the contribution margin format Contributio... View the full answer