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Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 61,000 Cost of goods sold 54,600 Gross profit
Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 61,000 Cost of goods sold 54,600 Gross profit $ 6,400 Operating expenses 15,600 Operating loss $ (9,200) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 15%. If sales increase by 15%, what will be the firm's operating income (or loss)? Operating loss: ?
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