Question: Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 61,500 Cost of goods sold 50,500 Gross profit

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

Sales $ 61,500
Cost of goods sold 50,500
Gross profit $ 11,000
Operating expenses 14,900
Operating loss $ (3,900)

Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 18%.

Required:

  1. Rearrange the preceding income statement to the contribution margin format.
  2. If sales increase by 15%, what will be the firm's operating income (or loss)?
  3. Calculate the amount of revenue required for Big Sky to break even.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Placid Lake Corporation acquired 70 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $590,000. Any excess fair value was assigned to...

Q:

Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 60,500 Cost of goods sold 50,900 Gross profit $ 9,600 Operating expenses 14,600 Operating loss $...

Q:

5. Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 60,500 Cost of goods sold 52,500 Gross profit $ 8,000 Operating expenses 15,000 Operating loss $...

Q:

Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 60,500 Cost of goods sold 53,200 Gross profit $ 7,300 Operating expenses 13,400 Operating loss $...

Q:

Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 60,500 Cost of goods sold 54,500 Gross profit $ 6,000 Operating expenses 14,400 Operating loss $...

Q:

5. Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 60,500 Cost of goods sold 52,500 Gross profit $ 8,000 Operating expenses 15,000 Operating loss $...

Q:

Presented here is the income statement for Big Sky Incorporated for the month of February: sales $ 6 0 , 5 0 0 , Cost of goods sold $ 5 3 , 6 0 0 , Gross profit $ 6 , 9 0 0 , Operating expenses $ 1 4...

Q:

Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 61,500 Cost of goods sold 50,300 Gross profit $ 11,200 Operating expenses 15,500 Operating loss $...

Q:

Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 6 1 , 5 0 0 Cost of goods sold 5 3 , 0 0 0 Gross profit $ 8 , 5 0 0 Operating expenses 1 3 , 7 0 0...

Q:

Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 62,000 Cost of goods sold 52,700 Gross profit $ 9,300 Operating expenses 13,700 Operating loss $...

Q:

Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 6 0 , 0 0 0 Cost of goods sold 5 1 , 9 0 0 Gross profit $ 8 , 1 0 0 Operating expenses 1 5 , 2 0 0...

Q:

An employment information service claims that the standard deviation of the annual salaries for public relations managers is greater in Florida than in Louisiana. You select a sample of public...

Q:

HR managements role in relation to the firms line management.

Q:

09.03-PR017 Recall Problem 09.02-PR018. Suppose both models will require a loan of $40,000 at an interest rate of 17%, with payment using Plan 1 over a period of 4 years. Rework the problem.

Q:

Let U and V be vector spaces over the same field F. We will create a new, larger, vector space, which contains both of U and V as subspaces. This new vector space is called the direct sum of U and V....

Q:

Why Mendal used/take two characters in the law of independent assortment of chromosomes?

Q:

Can you give an experiment that I can do at home about Gravimetric Analysis or Chemical Equilibria?

Q:

1.1. Express each of the following complex numbers in Cartesian form (x + jy): e-j", einl2, e-ja/2, ejSn/2 /2eiTIA, /2e194, /2e-j9714 2e-iT/4.

Q:

Write a marketing plan, start your comprehensive marketing plan researching Pepsi co, you will research the various elements of the marketing plan as it relates to this company. In unit vii you will...

Q:

You are exhibiting at a trade show that runs Monday through Saturday. It will be open from 7 a . m . until 7 p . m . each day. Approximately 2 0 0 0 trade show attendees will visit your booth. While...

Q:

Understand human resource planning in an academic setting.

Q:

Analyze mentoring and career planning opportunities for academics.

Q:

What are the constraints and opportunities, from a people management perspective, for Anna-Maria moving forward?