4. Presented here is the income statement for Big Surf, Inc., for


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4. Presented here is the income statement for Big Surf, Inc., for the month of May: Sales$60,500 Cost of goods sold 52,500 Gross profit$8,000 Operating expenses 15,700 Operating loss$(7,700) Based on an analysis of cost behavior patterns, it has been determined that the company’s contribution margin ratio is 18%. Required: a. Rearrange the preceding income statement to the contribution margin format. ____________________________ __________________________ ____________________________ __________________________ ____________________________ __________________________ ____________________________ __________________________ ____________________________ __________________________ b. If sales increase by 10%, what will be the firm’s operating income (or loss)? (Round your answer to the nearest whole dollar.) ________________ ________________________ c. Calculate the amount of revenue required for Big Surf, Inc., to break even. (Round your answer to the nearest whole dollar.) Break even: ________________________

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