Problem 12-19 Prepare a contribution margin format income statement; answer what-if questions LO 7, 8, 9

Shown here is an income statement in the traditional format for a firm with a sales volume of 7,800 units. Cost formulas also are shown:

Revenues	$	34,400
Cost of goods sold ($5,900 + $2.05/unit)		21,890
Gross profit	$	12,510
Operating expenses:
Selling ($1,160 + $0.09/unit)		1,862
Administration ($3,500 + $0.15/unit)		4,670
Operating income	$	5,978

Required:

a. Prepare an income statement in the contribution margin format.

b. Calculate the contribution margin per unit and the contribution margin ratio. (Do not round intermediate calculations. Round contribution margin per unit to 2 decimal places.)

c-1. Calculate the firm's operating income (or loss) if the volume changed from 7,800 units to 11,700 units. (Do not round intermediate calculations.)

c-2. Calculate the firm's operating income (or loss) if the volume changed from 7,800 units to 3,900 units. (Do not round intermediate calculations.)

Refer to your answer to part a for total revenues of $34,400.

d-1. Calculate the firms operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues increase by $15,000. (Round intermediate calculations to 2 decimal places.)

d-2. Calculate the firm's operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues decrease by $2,500. (Round intermediate calculations to 2 decimal places.)