Shown here is an income statement in the traditional format for a firm with a sales volume of $7,700$ units. Cost formulas also are shown:

Required:

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

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

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

$11,550$ units.

$3,850$ units.

d$.$ Refer to your answer to part a for total revenues of $$34,200.$ Calculate the firm's operating income $($or loss$)$ if unit selling price and

variable expenses per unit do not change and total revenues

Increase by $$12,000.$

Decrease by $$2,500.$

Complete this question by entering your answers in the tabs below.

Calculate the firm's operating income $($or loss$)$ if the volume changed from $7,700$ units to $11,550$ units.

Note: Do not round intermediate calculations.

Operating incomeAsk an expert