Presented here is the income statement for Big Sky Incorporated for the month of February:

Sales $ 62,000

Cost of goods sold 54,800

Gross profit $ 7,200

Operating expenses 14,900

Operating loss $ (7,700)

Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 16%.

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.