Traditional Income Statement Contribution Income Statement Sales 840,000 Sales 840,000 Cost of Goods Sold 760,000 Total Variable Costs Gross Profit 80,000 Contribution Margin Selling & Admin Expenses 25,000 Total Fixed Costs Operating Income 55,000 Operating Income Nevin's Cost of Goods Sold was 60% variable and 40% fixed. The Selling and Administrative Costs were 30% variable and 70% fixed. Convert the traditional income statement to a contribution income statement by filling in the statement above, on the right. 1. Using the contribution income statement, calculate the contribution margin ratio. 2. What is Nevin Company's breakeven point in revenue? 3. How much revenue would be necessary to make an operating income of $100,000