Shown here is an income statement in the traditional format for a firm with a sales volume of 7,800 units. Cost formulas also are shown

Revenues	$	34,300
Cost of goods sold ($5,900 + $2.05/unit)		21,890
Gross profit	$	12,410
Operating expenses:
Selling ($1,190 + $0.11/unit)		2,048
Administration ($3,750 + $0.25/unit)		5,700
Operating income	$	4,662

Required:

a. Prepare an income statement in the contribution margin format.

Contribution Margin Income Statement
Variable expenses:
Total variable expenses		0
		0
Fixed expenses:
Total fixed expenses		0
		$0

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

c-1. Calculate the firm's operating income (or loss) if the volume changed from 7,800 units to 11,700 units.

c-2. Calculate the firm's operating income (or loss) if the volume changed from 7,800 units to 3,900 units.

Refer to your answer to part a for total revenues of $34,300.

d-1. Calculate the firms operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues increase by $13,500.d-2. Calculate the firm's operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues decrease by $2,500.