Presented here is the income statement for Fairchild Co. for March: Sales $ 84,000 Cost of goods sold 40,000 Gross profit $ 44,000 Operating expenses 31,500 Operating income $ 12,500
Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 33%.
a. Rearrange the preceding income statement to the contribution margin format. $0 $0
b. Calculate operating income if sales volume increases by 10%. (Do not round intermediate calculations.)
c. Calculate the amount of revenue required for Fairchild to break-even.