Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 33

Prepare a contribution margin format income statement; calculate breakeven point Presented here is the income statement for Big Shot, Inc., for the month of May:

Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 20%.
Required:
a. Rearrange the preceding income statement to the contribution margin format.
b. If sales increase by 30%, what will be the firm's operating income?
c. Calculate the amount of revenue required for Big Shot, Inc., to break even.