Purpose a contribution margin format income statement

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Reference no: EM1314913

CVP Analysis - BEP

Prepare a contribution margin format income statement; calculate break-even point: Presented here is the income statement for Edwards Co. For February:

Sales...............

$80,000

 

Cost of goods sold..............

 

$48,000

Gross profit........

$32,000

 

Operating expenses.............

$21,200

 

Operating income ...............

$10,800

 

Required:

a. Rearrange the preceding income statement to the contribution margin format.

b. Calculate operating income if sales volume increases by 20%. (note: Do not construct an income statement to get your answer.)

c. Calculate the amount of revenue required for Edwards to break even

Reference no: EM1314913

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