Shown here is an income statement in the traditional format for a firm with a sales volume of $20,000$ units:

Revenues $ $160,000$

Cost of goods sold $($$$9,500+$ $$3\mathrm{.}00/$unit$)69,500$

Gross profit $ $90,500$

Operating expenses:

Selling $($$$2,400+$ $$0\mathrm{.}90/$unit$)20,400$

Administrative $($$$4,850+$ $$0\mathrm{.}45/$unit$)13,850$

Operating income $ $56,250$

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 $20,000$ units to

$25,000$ units.

$12,000$ units.

Refer to your answer to part a when total revenues were $$160,000.$ 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 $$12,500.$

Decrease by $$7,500.$