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Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 19%. Required: a. Rearrange the preceding
Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 19%. Required: a. Rearrange the preceding income statement to the contribution margin format. b. If sales increase by 15%, what will be the firm's operating income (or loss)? c. Calculate the amount of revenue required for Big Sky to break even. Complete this question by entering your answers in the tabs below. Calculate the amount of revenue required for Big Sky to break even. Jen and Barry's ice cream shof tharges $1.4 for a cone. Variable expenses are $0.22 per cone, and fixed costs total $2,400 per month. A Valentine's Day promotion is being planned for the second week of February. During this week, a person buying a cone at the regular price would receive a free cone for a friend. It is estimated that 675 additional cones would be sold and that 875 cones would be given away. Advertising costs for the promotion would be $170. Required: a. Calculate the effect of the promotion on operating income for the second week of February. b. Do you think the promotion should occur? Complete this question by entering your answers in the tabs below. Calculate the effect of the promotion on operating income for the second week of February. Note Do not round intermediate cakulation and round your final answer to 2 decimal places
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