Shown here is an income statement in the traditional format for a firm with a sales volume of 17,500 units:

Revenues	$	157,500
Cost of goods sold ($11,500 + $2.80/unit)		60,500
Gross profit	$	97,000
Operating expenses:
Selling ($2,450 + $0.85/unit)		17,325
Administration ($4,850 + $0.40/unit)		11,850
Operating income	$	67,825

Required:

a. Prepare an income statement in the contribution margin format.

Contribution Margin Income Statement
Variable expenses:
Total variable expenses		0
		0
Fixed expenses:
Total fixed expenses		0
		$0

b. Calculate the contribution margin per unit and the contribution margin ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

c-1. Calculate the firm's operating income (or loss) if the volume changed from 17,500 units to 22,500 units. (Do not round intermediate calculations.)

c-2. Calculate the firm's operating income (or loss) if the volume changed from 17,500 units to 9,500 units. (Do not round intermediate calculations.)

Refer to your answer to part a when total revenues were $157,500.

d-1. Calculate the firm's operating income (or loss) if unit selling price and variable expenses do not change and total revenues increase by $13,500. (Do not round intermediate calculations.)

d-2. Calculate the firm's operating income (or loss) if unit selling price and variable expenses do not change and total revenues decrease by $10,000. (Do not round intermediate calculations.)