Question
Presented here is the income statement for Fairchild Co. for March: Sales $ 84,000 Cost of goods sold 40,500 Gross profit $ 43,500 Operating expenses
Presented here is the income statement for Fairchild Co. for March: Sales $ 84,000 Cost of goods sold 40,500 Gross profit $ 43,500 Operating expenses 30,500 Operating income $ 13,000 Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 34%.
Required: a. Rearrange the preceding income statement to the contribution margin format.
Calculate operating income if sales volume increases by 6%. (Do not round intermediate calculations.
Calculate the amount of revenue required for Fairchild to break-even
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