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

Sales	$	77,500
Cost of goods sold		40,500
Gross profit	$	37,000
Operating expenses		32,000
Operating income	$	5,000

Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 26%. Required:

1. Rearrange the preceding income statement to the contribution margin format.
2. Calculate operating income if sales volume increases by 5%.
3. Calculate the amount of revenue required for Fairchild to break even.