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

Revenues $ $165,000$

Cost of goods sold $($$$11,000+$ $$2\mathrm{.}95/$unit$)55,250$

Gross profit $ $109,750$

Operating expenses:

Selling $($$$2,250+$ $$1\mathrm{.}10/$unit$)18,750$

Administrative $($$$5,400+$ $$0\mathrm{.}35/$unit$)10,650$

Operating income $ $80,350$

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 $15,000$ units to

$20,000$ units.

$7,000$ units.

Refer to your answer to part a when total revenues were $$165,000.$ 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 $$14,000.$

Decrease by $$9,000.$