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Shown here is an income statement in thetraditional format for a firm with a sales volume of 7,900 units.Cost formulas also are shown:


Revenues $ 34,500
Cost of goods sold ($5,600 + $2.2/unit) 22,980


Gross profit $ 11,520
Operating expenses:
Selling ($1,180 +$0.1/unit) 1,970
Administration ($3,550 +$0.2/unit) 5,130


Operating income $ 4,420





the optional account names for the three boxes under variableexpense are:

Requirement 1:

Prepare an income statement in the contributionmargin format. (Omit the "$" sign in yourresponse.)


revenues $
Variable expenses:
cost of good sold $

selling expense

administrative expense

Total variable expenses

Contribution margin $
Fixed expenses:
costof good sold $
admistratitve expenses
selling expenses

Total fixed expenses

operating income $



Requirement 2:

Calculate the contribution margin per unit andthe contribution margin ratio. (Omit the "$" and "%" signs inyour response. Round contribution margin per unit to 2 decimalplaces and contribution margin ratio to whole number.)


Contribution margin per unit $
Contribution margin ratio %
Requirement 3:
(a)

Calculate the firm's operating income (or loss)if the volume changed from 7,900 units to 11,850 units.(Do not round yourintermediate calculations. Round your answer to the nearest dollaramount. Omit the "$" sign in your response.)


operating income $
(b)

Calculate the firm's operating income (or loss)if the volume changed from 7,900 units to 3,950 units. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Inputall amount as positive values. Omit the "$" sign in yourresponse.)


operating income $
Requirement 4:
Refer to your answer to requirement 1 for total revenues of$34,500.
(a)

Calculate the firm%u2019s operating income (orloss) if unit selling price and variable expenses per unit do notchange, and total revenues increase by $10,500. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Omitthe "$" sign in your response.)


operating income $
(b)

Calculate the firm's operating income (or loss)if unit selling price and variable expenses per unit do not change,and total revenues decrease by $3,000. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Inputthe amount as positive value. Omit the "$" sign in yourresponse.)



operating income
$

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Sixta Kovacek
Sixta KovacekLv2
28 Sep 2019

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