Posted: February 17th, 2016

Prepare an income statement in the contribution margin format. (Omit the “$” sign in your response.)

Prepare an income statement in the contribution margin format. (Omit the “$” sign in your response.)

Requirement 2:
Calculate the contribution margin per unit and the contribution margin ratio. (Round your answers to 1 decimal place. Omit the “$” and “%” signs in your response.)

Requirement 3:
(a) Calculate the firm’s operating income (or loss) if the volume changed from 20,000 units to 25,000 units. (Input the amount as positive value. Omit the “$” sign in your response.)
(b) Calculate the firm’s operating income (or loss) if the volume changed from 20,000 units to 11,000 units. (Input the amount as positive value. Omit the “$” sign in your response.)

Requirement 4:
Refer to your answer to requirement 1 when total revenues were $160,000.
(a) Calculate the firm’s operating income (or loss) if unit selling price and variable expenses do not change, and total revenues increase by $18,000. (Input the amount as positive value. Omit the “$” sign in your response.)
(b) Calculate the firm’s operating income (or loss) if unit selling price and variable expenses do not change, and total revenues decrease by $12,000. (Input the amount as positive value. Omit the “$” sign in your response.)

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