Presented here is the income statement for Big Sky Inc. for the month of February: Based on
Question:
Presented here is the income statement for Big Sky Inc. for the month of February:
Based on an analysis of cost behavior patterns, it has been determined that the company’s contribution margin ratio is 25%.
Required:
a. Rearrange the preceding income statement to the contribution margin format.
b. If sales increase by 10%, what will be the firm’s operating income?
c. Calculate the amount of revenue required for Big Sky to break even.
Transcribed Image Text:
Sales.... Cost of goods sold. Gross profit. .... Operating expenses. Operating loss..... $130,000 109,000 $ 21,000 24,500 $ (3,500)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (10 reviews)
a Operating loss remains the same so Fixed expenses 3600...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Presented here is the income statement for Big Surf, Inc., for the month of May: Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
-
Presented here is the income statement for Big Shot Inc. for the month of May: Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
-
Here is the income statement for Eberle, Inc. Additional information: 1. Common stock outstanding January 1, 2014, was 32,000 shares, and 40,000 shares were outstanding at December 31, 2014. 2. The...
-
Find the slopes of the curves at the given points. Sketch the curves along with their tangents at these points. r = sin 2; = /4, 3/4
-
What is emotional intelligence and why is it important for leaders?
-
Patio Furniture Inc. has asked you to determine whether the company's ability to pay its current liabilities and long-term debts improved or deteriorated during 2017. To answer this question, compute...
-
Rosa and her best friend, Linda, live in Chicago and want to drive cross-country next year. Both work part-time and earn \($97\) a week after taxes. They need to save at least \($500\) each to pay...
-
1. Discuss the pros and cons of using average demand to assess capacity requirements. Is this a reasonable approach for the ER? 2. Make a recommendation for Jenn as to what she should do and the...
-
Assume coupons are paid annually. Here are the prices of threebonds with 10-year maturities. Assume face value is $100.Bond coupon (%)Price (%)282.53101.509132.50a. What is the 2 answers
-
A logical knowledge base represents the world using a set of sentences with no explicit structure. An analogical representation, on the other hand, has physical structure that corresponds directly to...
-
Harris Company experiences the following cost behavior patterns each week: Fixed costs: supervisors salary $1,600; factory rent $4,000 Mixed costs: utilities $2,400 + $8.40 per unit Variable costs...
-
Acme Inc. incurs the following costs during July: Required: Calculate Acmes total manufacturing costs for July. Sales expense.. Direct labor..... Factory supplies.. Advertising.. Raw material...
-
Look at Figure 2.17. If you did this titration using TRIS instead of phosphate, how would the titration curve look compared to the figure? Explain. Figure 2.17 Buffering. Acid is added to the two...
-
Why is the assessment of control risk a critical part of any financial statement audit? What is the impact on an auditor's financial statement audit strategy if control risk is set at a high level...
-
Define a walkthrough. As part of the definition, describe how the procedure is used to develop an understanding of internal control over financial reporting. Also, describe the conditions, if any,...
-
Assume that the histogram of starting salaries is approximately bell-shaped. Approximately what percentage of the salaries will be between \($34,680\) and $40,280? In Exercises 811, suppose that the...
-
Under what conditions is a qualified audit opinion issued ordinarily?
-
On what should an auditor base his or her opinion about compliance with GAAP?
-
Refer to QS 18-6. Assume that SBD Phone Co. is subject to a 30% income tax rate. Compute the units of product that must be sold to earn after-tax income of $140,000. (Round to the nearest whole...
-
A condenser (heat exchanger) brings 1 kg/s water flow at 10 kPa quality 95% to saturated liquid at 10 kPa, as shown in Fig. P4.91. The cooling is done by lake water at 20C that returns to the lake at...
-
Assume that you own 3,000 shares of Blueco, Inc.s, common stock and that you currently receive cash dividends of $.42 per share per year. Required: a. If Blueco, Inc., declared a 5% stock dividend,...
-
Assume that you own 500 shares of $10 par value common stock of a company and the company has a 2-for-1 stock split when the market price per share is $40. Required: a. How many shares of common...
-
Assume that you own 600 shares of common stock of a company, that you have been receiving cash dividends of $6 per share per year, and that the company has a 4-for-3 stock split. Required: a. How...
-
. 4. (10 points) Consider a new secondary method for the Statement component family. Complete the code of the WHILE and CALL cases in the implementation of the instance method aggression below. You...
-
. Exercise 7.3: Distance warning indicator A useful home project is to instrument a distance sensor where you park your car, which illuminates LEDs to let you know you have pulled in far enough...
-
just need help with 1)should return a short tweet describing all the pets currently in the shelter 2) should return only the pets of a certain type USING TEST SPECS. IS shelter.js U is pet.js ... JS...
Study smarter with the SolutionInn App