Shown here is an income statement in the traditional format for a firm with a sales volume of 19,500 units:

Revenues	$	253,500
Cost of goods sold ($10,500 + $2.95/unit)		68,025
Gross profit	$	185,475
Operating expenses:
Selling ($2,250 + $0.80/unit)		17,850
Administration ($5,400 + $0.40/unit)		13,200
Operating income	$	154,425

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 19,500 units to 24,500 units. (Do not round intermediate calculations.)

c-2. Calculate the firm's operating income (or loss) if the volume changed from 19,500 units to 11,500 units. (Do not round intermediate calculations.)

Refer to your answer to part a when total revenues were $253,500.

d-1. Calculate the firm's operating income (or loss) if unit selling price and variable expense per unit 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 expense per unit do not change and total revenues decrease by $10,000. (Do not round intermediate calculations.)

Required a. Prepare an income statement in the contribution margin format. Contribution Margin Income Statement Variable expenses: Total variable expenses 0 Fixed expenses: Total fixed expenses 0 0 Contribution margin per unit Contribution margin ratio