the big truck shop is a large retaler for pick up trucks . the liners are purchsed from a supplier for $125 each. Big trucjs shop sell each lier fo it coustomers for $350.00. An income statemtent for the most recent quarter is presented below:

the big truck shop

income statement, fro First quarter of current year, sales $7000,000, less : cost of good sold $250,000, gross margin $450,000 less operating expenses: selling expenses $195,000, Administrative expenses $144,000 net insome $111,000

the company variable selling expenses are $49.50 per liner sold. The reamining selling expenses ares $35.50 per liner sold The remainng administrative expenses are fixed.

Required: prepare and income statemnt of the quarter using the contriution approach include columns for percentage(%) and unit amounts

b) calulate break even in both units and sales dollrs

c) Calculate the margin of safety both in dollars and as a percentage of sales

e) calculate the revised operating income (loss assuming that sales volume decreases by 45%

f) managemetis convinced that puchsing a higher qunatity product from another vendor for $150.00 per unit will incrased sales by 250. Do you recommend implementing mamagement suggestion? why or why not