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	$ (6,100)

Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 15%.

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.

Operating loss Break even \begin{tabular}{|c|c|} \hline \multirow{2}{*}{\multicolumn{2}{|c|}{\begin{tabular}{|l|} Sales \\ Variable expenses \end{tabular}}} \\ \hline & \\ \hline Contribution margin & 0 \\ \hline Fixed expenses & \\ \hline Operating loss & $ \\ \hline \end{tabular}