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Presented here is the income statement for Fairchild Co. for March: Sales $ 81,500 Cost of goods sold 40,000 Gross profit $ 41,500 Operating expenses

Presented here is the income statement for Fairchild Co. for March:

Sales $ 81,500
Cost of goods sold 40,000
Gross profit $ 41,500
Operating expenses 30,500
Operating income $ 11,000

Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 28%. Required:

  1. Rearrange the preceding income statement to the contribution margin format.
  2. Calculate operating income if sales volume increases by 9%.
  3. Calculate the amount of revenue required for Fairchild to break even.

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