Presented here is the income statement for Fairchild Company for March: $ 79,500 40,500 $ 39,000...

 

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Presented here is the income statement for Fairchild Company for March: $ 79,500 40,500 $ 39,000 Operating expenses 31,000 Operating income $ 8,000 Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 29%. Required: Sales Cost of goods sold Gross profit a. Rearrange the preceding income statement to the contribution margin format. b. Calculate operating income if sales volume increases by 9%, c. Calculate the amount of revenue required for Fairchild to break even, Presented here is the income statement for Fairchild Company for March: $ 79,500 40,500 $ 39,000 Operating expenses 31,000 Operating income $ 8,000 Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 29%. Required: Sales Cost of goods sold Gross profit a. Rearrange the preceding income statement to the contribution margin format. b. Calculate operating income if sales volume increases by 9%, c. Calculate the amount of revenue required for Fairchild to break even,

Answer rating: 100% (QA)

a To reformat the income statement to the contribution margin format we need to separate the costs i... View the full answer