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Presented below is the income statement for Ackee Food Center for the month of July: Sales 1,280,000 Cost of Goods Sold 1,180,000 Gross Profit 100,000
Presented below is the income statement for Ackee Food Center for the month of July: Sales 1,280,000 Cost of Goods Sold 1,180,000 Gross Profit 100,000 Operating Expense 64,000 Operating Income 36,000 Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 15 percent. (a.) Rearrange the above income statement to the contribution margin format. (b.) If sales increase by 10 percent, what will be the firm's operating income? (c.) Calculate the amount of revenue required for Ackee's Food Center to break even. (please note: while this question has been asked before, the answer provided does not match the question asked)
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