Shown here is an income statement in the traditional format for a firm with a sales volume of 15,000 units:

Shown here is an income statement in the traditional format for a firm with a sales volume of 15,000 units:

Revenues	$	180,000
Cost of goods sold ($11,500 + $2.80/unit)		53,500
Gross profit	$	126,500
Operating expenses:
Selling ($2,150 + $0.80/unit)		14,150
Administration ($5,100 + $0.35/unit)		10,350
Operating income	$	102,000

Required:

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

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 15,000 units to 20,000 units. (Do not round intermediate calculations.)

c-2. Calculate the firm's operating income (or loss) if the volume changed from 15,000 units to 7,000 units. (Do not round intermediate calculations.) Refer to your answer to part a when total revenues were $180,000.

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 $14,000. (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 $8,000. (Do not round intermediate calculations.)