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I need help with problem B. I do not understand to not construct and income statement. Do i just add it to a? I dont
I need help with problem B. I do not understand to not construct and income statement. Do i just add it to a? I dont know if I did 'a' correctly.
\begin{tabular}{|c|c|c|c|c|} \hline \multirow[t]{9}{*}{a} & \multirow{2}{*}{\multicolumn{2}{|c|}{\begin{tabular}{l} Fairchild Co. \\ Income statement: March \end{tabular}}} & b & \\ \hline & & & & volume increase \\ \hline & \multicolumn{2}{|c|}{ Contribution Margin } & & 10% \\ \hline & Sales & 100,000 & & \\ \hline & Variable costs & 70,000 & & \\ \hline & Contribution margin & 30,000 & & \\ \hline & Fixed costs & 21,000 & & \\ \hline & Operating income & 9,000 & & \\ \hline & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multirow[t]{8}{*}{a} & \multirow{2}{*}{\multicolumn{2}{|c|}{\begin{tabular}{c} Fairchild Co. \\ Income statement: March \end{tabular}}} & b \\ \hline & & & \\ \hline & \multicolumn{2}{|c|}{ Contribution Margin } & \\ \hline & Sales & 100000 & \\ \hline & Variable costs & =T6T8 & \\ \hline & Contribution marg & =T6N12 & \\ \hline & Fixed costs & =T8T10 & \\ \hline & Operating income & =N9 & \\ \hline \end{tabular} Prepare a contribution margin format income statement; calculate breakeven point Presented here is the income statement for Fairchild Co. for March: Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 30%. Required: a. Rearrange the preceding income statement to the contribution margin format. b. Calculate operating income if sales volume increases by 10%. (Note: Do not construct an income statement to get your answer.) c. Calculate the amount of revenue required for Fairchild to break evenStep by Step Solution
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