Presented here is the income statement for Big Shot, Inc., for the month of May:...
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Presented here is the income statement for Big Shot, Inc., for the month of May: Sales Cost of goods sold Gross profit Operating expenses Operating loss $61,000 50,200 $10,800 14.200 $ (3,400) 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)? (Do not round intermediate calculations.) c. Calculate the amount of revenue required for Big Shot, Inc., to break-even. Break-even
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