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

Revenues......................................................................................$105,000

Cost of Goods Sold ($8000 + $3.60/unit)......................................$62,000

Gross Profit....................................................................................$43,000

Operating Expenses

Selling ($1,500 + .80/unit) .............................................................$13,500

Administration ($4000 + .50/unit)..................................................$11,500

Operating Income.........................................................................$18,000

Required

a. Prepare an income statement in the contribution format

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

c. Calculate the firm's operating income (or loss) if the volune changed from 15,000 to

1. 20,000 units

2. 10, 000 units