Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 60,500 Cost of goods sold 50,900 Gross profit $ 9,600 Operating expenses 14,600 Operating loss $ (5,000) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 17%. Required: Rearrange the preceding income statement to the contribution margin format. If sales increase by 10%, what will be the firm's operating income (or loss)? Calculate the amount of revenue required for Big Sky to break even.

Presented here is the income statement for Big Sky Incorporated 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 \17. 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 (or loss)? c. Calculate the amount of revenue required for Big Sky to break even