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question prepare a contribution margin format income statement calculate breakeven p 4292063

Question

Prepare a contribution margin format income statement; calculate breakeven point. Presented here is the income statement for Fairchild Co. for March: Sales ……………………………………………………………………………………………… $80,000 Cost of goods sold ………………………………………………………………………….. 42,000 Gross profit ……………………………………………………………………………………. $38,000 Operating expenses ………………………………………………………………………….. 32,000 Operating income ……………………………………………………………………………. $ 6,000 Based on the analysis of cost behavior patterns, it has been determined that the company’s contribution margin ratio is 30%. Required: a. Rearrange the preceding income statement to the contribution margin format. b. Calculate operating income if sales volume increases by 80%. ( Note: Do not construct an income statement to get your answer: ) c. Calculate the amount of revenue required for Fairchild to break even.

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