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 + $2.95/unit)		63,125
Gross profit	$	94,375
Operating expenses:
Selling ($2,450 + $0.80/unit)		16,450
Administration ($5,350 + $0.35/unit)		11,475
Operating income	$	66,450

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 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 expense per unit do not change and total revenues increase by $12,500. (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 $8,000. (Do not round intermediate calculations.)