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I need help solving C-2, D-1, D-2. Shown here is an income statement in the traditional format for a firm with a sales volume of
I need help solving C-2, D-1, D-2.
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: $34,300 21,590 $12,710 Cost of goods sold ($5,600 Gross profit Operating expenses: $2.05/unit) 1,940 4,720 $ 6,050 Selling ($1,160S0.10/unit) Administration (S3,550S0.15/unit) Operating income Required a. Prepare an income statement in the contribution margin format. Contribution Margin Income Statement $ 34,300 Variable expenses t of goods sold $15,990 780 1,170 ing expenses Administrative expenses 17,940 Total variable expenses ntribution margin Fixed expenses Cost of goods sold 16,360 5,600 1,160 3,550 lling expenses Administrative expenses Total fixed expenses perating income 10,310 $6,050 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.) perating loss Refer to your answer to part a for total revenues of $34,300 d-1. Calculate the firm's operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues increase by $12,000. (Round intermediate calculations to 2 decimal places.) Operating income 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 $3,000. (Round intermediate calculations to 2 decimal places.) perating incomeStep by Step Solution
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