5. Presented here is the income statement for Big Sky Incorporated for the month of...
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5. Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 60,500 Cost of goods sold 52,500 Gross profit $ 8,000 Operating expenses 15,000 Operating loss $ (7,000) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 17%. 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)? c. Calculate the amount of revenue required for Big Sky to break even.
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