(Answered)-4. Presented here is the income statement for Big Surf, Inc., for

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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Oct 07, 2020

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