Question
Presented here is the income statement for Big Sky Incorporated for the month of February, $ 62,000 53,900 $ 8,100 14,100 $ (6,000) Sales
Presented here is the income statement for Big Sky Incorporated for the month of February, $ 62,000 53,900 $ 8,100 14,100 $ (6,000) Sales Cost of goods sold Gross profit Operating expenses Operating loss Based on an analysis of cost behavior patterns. It has been determined that the company's contribution margin ratio is 18%. Required: a. Rearrange the preceding income statement to the contribution margin format. b. If sales increase by 15%, what will be the firm's operating income (or loss)? c. Calculate the amount of revenue required for Big Sky to break even.
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
4th Canadian edition
978-1259269868, 978-1259103292
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