Shown here is an income statement in the traditional format for a firm with a sales volume of 8,000 units.

Cost formulas also are shown: Revenues $ 34,600 Cost of goods sold ($5,900 + $2.10/unit) 22,700 Gross profit $ 11,900 Operating expenses: Selling ($1,160 + $0.11/unit) 2,040 Administrative ($3,650 + $0.20/unit) 5,250 Operating income $ 4,610

Required: Prepare an income statement in the contribution margin format.

Calculate the contribution margin per unit and the contribution margin ratio.

Calculate the firm's operating income (or loss) if the volume changed from 8,000 units to 12,000 units. 4,000 units.

Refer to your answer to part a for total revenues of $34,600. Calculate the firms operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues:

Increase by $12,500.

Decrease by $4,000.